A cryptocurrency wallet labeled as belonging to the German Government (BKA) has successfully sold Bitcoin worth more than $54 million. On June 25, the German government’s wallet made three separate transactions, selling a total of 900 Bitcoin (BTC). The first transaction involved sending 200 BTC to the Coinbase exchange, while the second transfer of 200 BTC was sent to the Kraken exchange. The third transaction, however, involved the transfer of 500 BTC, equivalent to over $30 million, to a wallet identified as “139Po,” which remains unidentified, according to Arkham Intelligence, an onchain intelligence provider.
Although the owner of wallet “139Po” is still unknown, this is not the first time the German government has interacted with it. On June 20, the German government sent 800 BTC to this address, followed by another 500 BTC on June 19, just six days prior to the recent transaction. After these transfers, the wallet still retains 46,359 Bitcoin, according to Arkham Intelligence.
The government-labeled wallet currently holds over $2.8 billion worth of BTC, which could potentially introduce significant selling pressure and cause Bitcoin’s price to drop below the crucial psychological mark of $60,000. Bitcoin’s price has been on a downward trend, experiencing an 11% decline on the monthly chart and over 7% on the weekly chart. As of 9:40 am UTC, it is trading slightly above $61,000, according to Bitstamp data.
Renowned analyst Willy Woo suggests that based on technical chart patterns, Bitcoin may undergo a correction lasting up to four weeks before its price rally resumes. In a post on June 22, Woo shared this analysis with his 1.1 million followers.
The German government’s labeled wallet has raised suspicions of potential Bitcoin selling since June 19, when it executed a transfer of 6,500 BTC, valued at over $425 million. In addition to these transfers to untagged wallets, most of the Bitcoin from the government’s wallet is being transferred to centralized exchanges, indicating a potential intention to sell. Prior to these recent transfers, the wallet had held nearly 50,000 BTC since February 2024. These funds are believed to have been seized from the operator of the pirated movie website, Movie2k.
Furthermore, the month of July could bring more Bitcoin selling pressure as Mt. Gox, a collapsed cryptocurrency exchange, announced its plans to begin repaying its defunct users. Approximately $9.4 billion worth of Bitcoin is owed to around 127,000 Mt. Gox creditors, who have been waiting for over a decade to recover their funds. This repayment process could significantly impact Bitcoin’s price due to the influx of selling.