German Government-Linked Wallet Offloads $52M in Bitcoin, Fuels Market Sell-Off Speculations
Summary:
A cryptocurrency wallet linked to the German government, known as "German Government (BKA)", has executed another sale of Bitcoin, moving $52 million worth of the digital currency. The wallet moved 832.7 Bitcoin through four transactions, with the largest share, $32 million, sent to an unknown wallet. The wallet has previously been associated with large Bitcoin transfers, raising speculations of the Government potentially selling off its Bitcoin holdings. The downturn in Bitcoin's price since June could be affected by more selling pressure from this government-affiliated wallet.
A cryptocurrency wallet tagged "German Government (BKA)" has offloaded another stash of Bitcoin valued at $52 million, leading to speculation that the government may be gradually dispensing its considerable Bitcoin assets. On July 2, this wallet, linked to the German government, carried out four separate transactions moving 832.7 Bitcoin (BTC). Data from Arkham Intelligence shows that the wallet dispatched 100 BTC to Coinbase, 150 BTC to Bitstamp, and more than 32 BTC to Kraken. The highest amount, 550 BTC worth over $32 million, was transferred to the unidentified wallet "139Po". This wallet has previously received payments from the German government, including 500 BTC on June 25 and 800 BTC on June 20. Observing the sales trends of large Bitcoin owners can offer vital hints about Bitcoin price, since significant sell orders can magnify downward price shifts. The government-labeled BKA wallet may impact Bitcoin's price due to possible increased selling pressure, as it holds over 43,850 BTC worth more than $2.75 billion. Since June's onset, the price of Bitcoin has been on a downward trend, depreciating over 7.3% in the past month. BTC hit a recent low of over $58,450 on June 24, but has since recovered above the present $62,000 mark per Bitstamp data. Major support for Bitcoin has been established at the $61,500 threshold. However, falling below this point could trigger the liquidation of over $1 billion in combined leveraged long positions across all exchanges, based on data from Coinglass. Besides the major transfer of $32 million, the remaining Bitcoin was shifted to centralized exchanges—which hints at Germany's potential intent to sell Bitcoin. Germany's Federal Criminal Police Office (BKA) has been contacted by Cointelegraph for a statement. The German government-identified wallet first created speculation of potential Bitcoin selling on June 19, following a 6,500 BTC transfer equating to more than $425 million. Until that transaction, the wallet had held close to 50,000 BTC since February 2024, reportedly seized from Movie2k, a pirated movie website operator.
Published At
7/2/2024 3:03:33 PM
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