A cryptocurrency wallet affiliated with the German Government (known as BKA) has recently transacted $52 million worth of Bitcoin, prompting speculation about the government’s intentions to divest its substantial BTC holdings.
On July 2, the German government-associated wallet conducted four separate transactions, moving a total of 832.7 Bitcoin (BTC). As per data from Arkham Intelligence, the wallet transferred 100 BTC to Coinbase, 150 BTC to Bitstamp, and 32.74 BTC to Kraken. The predominant portion of the sum, amounting to 550 BTC valued at over $32 million, was sent to the wallet with the address “139Po.” Although the recipient remains unidentified, it has previously received significant funds from the German government, including 500 BTC on June 25 and 800 BTC on June 20.
Observing the selling trends of major Bitcoin-holding entities can furnish investors with crucial insights regarding Bitcoin’s price trajectory, as substantial sell-offs could exert downward pressure on the market value.
The BKA-designated wallet, holding more than 43,850 BTC valued at over $2.75 billion, might impact Bitcoin’s price by potentially intensifying selling pressure. Since the start of June, Bitcoin’s price has exhibited a downward trend, experiencing a decline of 7.3% over the past month. On June 24, BTC reached a local bottom just above the $58,450 mark before recovering and surpassing the current $62,000 mark, according to data from Bitstamp.
Bitcoin has garnered significant support around the $61,500 mark; however, a drop below this level could trigger the liquidation of over $1 billion worth of leveraged long positions across various exchanges, as per Coinglass data.
The movement of Bitcoin to centralized exchanges, alongside the notable $32 million transfer, suggests that the German government is potentially preparing to sell its Bitcoin holdings. Cointelegraph has reached out to Germany’s Federal Criminal Police Office (BKA) for clarification.
The wallet associated with the German government initially aroused suspicions of potential Bitcoin divestment on June 19 by executing a transfer of 6,500 BTC worth more than $425 million. Prior to this transaction, the wallet had accumulated nearly 50,000 BTC since February 2024, with the funds believed to have been confiscated from the administrator of the illicit movie website Movie2k.