The German and United States governments have garnered significant attention after transferring millions of dollars in crypto holdings, sparking analysis and speculation within the market. On July 1, the German government moved 1,500 BTC, valued at roughly $95 million, to multiple crypto exchanges, while the U.S. government transferred 3,375 ETH, worth $11.75 million, to an unknown address.
German Government BTC Transfers
According to on-chain analytics platform Arkham Intelligence, the German government has transferred 2,700 BTC to various exchanges over the past two weeks, including Bitstamp, Coinbase, and Kraken. The German government currently holds 44,692 BTC, valued at approximately $2.82 billion. In its latest transfers, 400 of the 1,500 BTC moved were sent to these major exchanges, with an additional 750 BTC transferred on June 26, including 250 BTC to Bitstamp and Kraken.
US Government ETH Transfers
Arkham Intelligence data also revealed significant transactions by the U.S. government, specifically from the address holding funds seized from Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin. Following the movement of 11.84 BTC, worth around $743,000, on June 30 from another seized funds address, the U.S. government transferred its entire $11.75 million in ETH holdings to a previously unassociated address.
Analysis and Market Impact
These frequent transfers suggest strategic fund management by both governments. Germany appears to be positioning to liquidate its holdings on major exchanges, while the U.S. government’s transfer to an unknown wallet indicates a potential shift in ETH fund management.
Vijay Pravin, CEO of bitsCrunch, noted that the price of BTC has “slumped by 6%” since the onset of these government transactions.
“The market is waking up to potential downside risk. There’s caution among investors that large-scale disposals by the German and U.S. governments could trigger a more pronounced downturn in Bitcoin’s price, leading to higher selling pressure and increased volatility.”
The Markets in Crypto-Assets Regulation (MiCA), recently adopted by the European Union, may also influence Germany’s crypto transfers, adding another layer of complexity to these significant movements in the crypto market.
