A significant revelation from blockchain analytics firm Arkham Intelligence highlights that a cryptocurrency wallet associated with the German government still holds approximately 38,488 Bitcoin (BTC), equivalent to about $2.19 billion in value. This substantial Bitcoin holding persists despite recent sell-offs by the German government, which have had repercussions on market dynamics.
The German Federal Criminal Police Office (BKA) initially confiscated 49,857 BTC from the illegal piracy platform Movie2K. During June and July 2024, the BKA gradually sold off these seized assets, causing disruptions within the cryptocurrency ecosystem.
Among these transactions, a notable instance involved transferring 1,095.338 BTC, valued at over $67 million at the time, to major cryptocurrency exchanges such as Kraken and Bitstamp, as per insights from Arkham Intelligence.
The government-affiliated wallet initiated a test transaction of 0.001 BTC to a market wallet before proceeding with two sizable transactions of $345.338 BTC each, totaling around $21.23 million. These transactions were further validated by LookonChain, a reputable on-chain analytics provider.
Simultaneously, the BKA-linked wallet received 345.338 BTC during the same period, adding to its cryptocurrency holdings.
The remaining Bitcoin reserves represent approximately 6.64% of Bitcoin's 24-hour trading volume amounting to $32.96 billion, according to data sourced from CoinMarketCap. This substantial reserve size raises concerns about potential selling pressure that could influence Bitcoin's price movement in the upcoming weeks.
Institutional sales by prominent entities like the BKA are speculated to have played a significant role in the recent downtrend of Bitcoin's value and the wider cryptocurrency market. Reports from CoinGecko indicate a decline in the overall cryptocurrency market capitalization from $2.6 trillion on June 1 to $2.1 trillion at present.
At present, Bitcoin is valued at $56,275.18, reflecting a marginal 0.91% decrease compared to its recent pricing trends.
