The German government has transferred a substantial portion of its Bitcoin reserves to various exchanges.
Blockchain data reveals that on July 4th, the German Federal Criminal Police Office (BKA) moved approximately $75 million worth of Bitcoin through multiple transactions. These funds were distributed across exchanges such as Coinbase, Kraken, and Bitstamp.
This follows the government’s transfer of around $315 million in Bitcoin to different platforms since mid-June. In less than a month, Germany has offloaded over $390 million in Bitcoin.
In 2013, the BKA seized nearly 50,000 Bitcoin from the former operator of the film piracy website Movie2K. Today, this stash is valued at approximately $2.3 billion.
The consistent transfer of Bitcoin to exchanges suggests that Germany may be planning to liquidate parts of its reserves. This has raised concerns about potential impacts on Bitcoin’s market price, which recently fell below $58,000.
Despite these transfers, they represent a small fraction of the BKA’s large Bitcoin holdings. After the latest movements, Germany still holds about 40,000 Bitcoin.
These sales are reminiscent of similar actions by the U.S. government, which also holds Bitcoin confiscated from criminal cases, leading to concerns about possible sales.
The liquidations coincide with creditor repayments from the 2014 collapse of Mt. Gox, expected to start in July, potentially adding selling pressure on Bitcoin.
However, proponents argue that these amounts represent a tiny fraction of daily Bitcoin trading volumes.
