An identified cryptocurrency wallet linked to the German Government (BKA) has reportedly divested another $52 million worth of Bitcoin, leading to speculations about the potential sale of the government’s substantial Bitcoin reserves.
On July 2, the wallet affiliated with the German government conducted four separate transactions, moving a total of 832.7 Bitcoin (BTC). The transfers included sending 100 BTC to the Coinbase exchange, 150 BTC to Bitstamp, and more than 32 BTC to the Kraken exchange, as per data from Arkham Intelligence.
A significant portion of the amount, equating to 550 BTC valued at over $32 million, was directed to the wallet address “139Po,” which remains unidentified. This specific wallet had previously received transfers from the German government, such as 500 BTC on June 25 and 800 BTC on June 20.
Analysts note that monitoring the transaction behavior of major entities holding substantial Bitcoin holdings can offer valuable insights to investors concerning Bitcoin’s price movements. Large sell orders typically exert downward pressure on the price of Bitcoin.
Notably, the BKA-labelled wallet, which currently holds more than 43,850 BTC worth in excess of $2.75 billion, could potentially impact Bitcoin’s price further by introducing additional selling pressure.
Bitcoin’s price has witnessed a decline since the start of June, experiencing a drop of over 7.3% over the past month. Following a local bottom near the $58,450 level on June 24, BTC has rebounded to surpass the $62,000 mark, according to data from Bitstamp.
Although Bitcoin has found considerable support around the $61,500 mark, breaching this level could trigger liquidations exceeding $1 billion from leveraged long positions across various exchanges, according to data provided by Coinglass.
Aside from the substantial $32 million transfer, the remaining Bitcoin from the recent transactions was funneled to centralized exchanges, suggesting a potential intent by the German government to continue selling Bitcoin assets.
Inquiries have been directed to Germany’s Federal Criminal Police Office (BKA) by Cointelegraph to seek clarification on the ongoing Bitcoin dispositions.
The suspicions of probable Bitcoin sales by the German government were initially raised on June 19 when a sizeable transfer of 6,500 BTC valued at over $425 million was executed. Prior to this transaction, the wallet had held close to 50,000 BTC since February 2024, with the funds believed to have been confiscated from the operator of the illicit movie website Movie2k.