The German government has once again transferred a significant amount of Bitcoin, raising suspicions of an impending sell-off. On July 2, a cryptocurrency wallet labeled “German Government (BKA)” moved $52 million worth of Bitcoin, suggesting a strategy to liquidate its vast BTC holdings.
Recent Bitcoin Transfers
According to Arkham Intelligence data, the government wallet transferred 832.7 BTC in four separate transactions. The breakdown is as follows:
- 100 BTC to Coinbase
- 150 BTC to Bitstamp
- 32 BTC to Kraken
- 550 BTC worth over $32 million to the unknown wallet “139Po”
This wallet “139Po” has previously received funds from the German government, including 500 BTC on June 25 and 800 BTC on June 20.
Implications for Bitcoin Price
The repeated Bitcoin transfers to centralized exchanges indicate a potential plan to sell, which could introduce more selling pressure on Bitcoin’s price. The BKA-labeled wallet holds over 43,850 BTC, valued at approximately $2.75 billion. Tracking the selling patterns of large Bitcoin holders is crucial for investors, as significant sell orders can create downward price pressure.
Bitcoin has been in a downtrend since early June, falling over 7.3% in the past month. BTC found a local bottom above $58,450 on June 24 before bouncing back above $62,000. Despite this, Bitcoin has strong support at $61,500. However, a move below this level could liquidate over $1 billion in leveraged long positions across all exchanges, according to Coinglass data.
The substantial transfer of $32 million worth of Bitcoin and additional transfers to centralized exchanges indicate the German government may be planning a Bitcoin sell-off.
Background on Bitcoin Holdings
The German government-labeled wallet first raised concerns about a potential sell-off on June 19, when it transferred 6,500 BTC worth over $425 million. Before this transfer, the wallet held nearly 50,000 BTC since February 2024. These funds are believed to have been seized from the pirated movie website operator, Movie2k.
BTC/USD 1-month chart. Source: TradingView
As the situation unfolds, the market will closely watch the German government’s next moves, given the potential impact on Bitcoin’s price and overall market sentiment.
