Germany Transfers 400 Bitcoin to Coinbase and Kraken in Recent Government Move
A blockchain wallet linked to Germany’s federal criminal police office, BKA, has reportedly transferred 400 Bitcoin (BTC) to two prominent U.S.-based crypto exchanges, Kraken and Coinbase. This transfer occurred amidst a significant downtrend that pushed the price of Bitcoin below $60,000 for the first time since late February.
Data from Arkham Intelligence indicates that the German agency-affiliated blockchain wallet sent the funds in two separate transactions to the exchanges, each containing 200 BTC ($12.22 million). These transactions took place at 7:38 (UTC) on the same day.
The move sparked curiosity within the crypto community, with members speculating on the purpose behind the transfer. Typically, when cryptocurrencies are sent to exchanges, it suggests an intention to sell them for fiat currency or convert them to other tokens. However, the exact fate of these funds post-transfer remains unverifiable through blockchain data. Such transactions are often viewed as bearish signals that could impact the asset’s price dynamics.
Following the transfers to Coinbase and Kraken, the agency wallet proceeded to send an additional 500 BTC to an undisclosed address. As of the latest data, the German agency wallet holds 46,395 BTC, valued at $2.83 billion, having incurred a loss of $9.7 million in the past 24 hours. This is not the first instance of the wallet transferring significant amounts to exchanges, as it had previously sent 700 BTC to Coinbase in two separate transactions of 200 and 500 BTC, respectively, last week.
Moreover, the wallet also moved 800 BTC to an unknown wallet on June 20, totaling 3,400 BTC transferred, valued at $207.87 million, while receiving 1,400 BTC during the same period.
The sale of 400 BTC is believed to be a contributing factor to the recent downward pressure on Bitcoin’s price. Other factors such as Mt. Gox’s BTC repayment, substantial outflows from Bitcoin spot ETFs, and substantial selling pressure from large holders have also played roles in Bitcoin’s recent price underperformance.
At the time of writing, Bitcoin is trading at $61,140, reflecting a 0.18% decline over the past day. Notably, Bitcoin’s trading volume has surged by 42.3% in the last 24 hours to $37.51 billion.
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