The German According to blockchain analysis firm Arkham, the government has transferred millions of seized Bitcoin to major Bitcoin and crypto exchanges Kraken and Coinbase.
The transfers came from a wallet connected to the German Federal Criminal Police Office (BKA). In 2013, the BKA seized nearly 50,000 Bitcoin from a movie piracy website.
On Tuesday, the BKA wallet moved $24 million worth of Bitcoin via two transactions to Kraken and Coinbase. Another $30 million worth of Bitcoin was sent to an unknown wallet that was not affiliated with any exchange.
This is evident from Arkham data that these transfers follow previous moves of $195 million in Bitcoin to exchanges on June 19 and 20. More than $425 million has moved in the past week.
While the German government still holds the majority of the seized Bitcoin, the transfers to exchanges may indicate an intention to liquidate some of the assets.
Selling government-run Bitcoin introduces potential downward price pressure. However, the amounts moved so far represent a relatively small portion of daily Bitcoin trading volume.
Nevertheless, Bitcoin fell below $60,000 on Tuesday amid this news. The German government’s Bitcoin wallet still contains more than 46,000 Bitcoin worth almost $3 billion.
For German police, Bitcoin seized in illegal activities has increased dramatically in value. Selling even a fraction yields an unexpected windfall. However, concerns remain about the potential impact on the broader Bitcoin market.