Key Points
- The German Federal Criminal Police Office continues to offload seized Bitcoin, recently transferring $17.6 million worth to exchanges.
- Germany still holds a significant position in the global Bitcoin market despite the ongoing sale of seized Bitcoin.
The German Federal Criminal Police Office (BKA) is persistently offloading Bitcoin that it seized. After a recent transfer of 1,500 Bitcoin (BTC) equivalent to $94 million to various exchanges, the BKA has now sent an additional $17.6 million worth of the cryptocurrency to major platforms like Coinbase, Bitstamp, and Kraken. This follows a series of transfers which began last month after the authorities seized 50,000 BTC from the defunct film piracy site Movie2k in January.
On July 2, BKA wallets, as identified by the on-chain analytics firm Arkham, transferred specific amounts to each exchange. 100 BTC ($6.2 million) went to Coinbase, 150 BTC ($9.4 million) to Bitstamp, and 32.74 BTC ($2 million) to Kraken. These transfers add to previous transactions throughout June, bringing the total value of transferred Bitcoin to approximately $193 million directed towards exchanges.
Unidentified Transfers and German Government’s Strategy
Arkham also reported a $251 million transfer to an unidentified address labeled “139Po”, which might be another exchange. The frequent transfers to this address raise questions about its purpose. While Arkham hasn’t definitively identified it, it’s possible that it could be another exchange handling the liquidation of seized Bitcoin. Confirming its exact nature would require further investigation or official statements from German authorities.
The German government’s strategy regarding the seized Bitcoin appears to be multifaceted. On June 26, a 345.34 BTC ($21.2 million) transaction was sent to market maker Flow Traders, suggesting a potential sale through their services. However, there’s also evidence of repurchases. On June 27th, the German government received a combined 475 BTC ($29.2 million) from addresses linked to Kraken, Bitstamp, and Coinbase. This follows previous inflows from these exchanges and Robinhood totaling 400 BTC ($25.6 million).
Germany’s Position in the Global Bitcoin Market
Despite these recent offloads, Germany still holds a significant position in the global Bitcoin market. With their remaining holdings of 43,859 BTC (valued at $2.7 billion), they rank among the top nation-state holders, behind the United States (213,246 BTC), China (estimated 190,000 BTC), and the United Kingdom (61,000 BTC).
The ongoing sale of seized Bitcoin by the German government coincides with a slight decline in the cryptocurrency’s price. Since these transfers began on June 18th, Bitcoin has slightly gained 0.15%, currently trading at $62,737. Whether these sales contribute significantly to the price movement remains to be seen, but it’s a factor to consider in the ongoing market analysis.
