German gov’t transfers $172M in Bitcoin to multiple locations

The German government’s newest Bitcoin transfers, which shift 3,000 BTC to multiple crypto exchanges and an unknown wallet, have the potential to have a substantial impact on markets. A crypto wallet linked to the German government sent more than 3,000 Bitcoin worth over $172 million to three cryptocurrency exchanges and a wallet.

On July 4, blockchain investigator PeckShieldAlert reported a major outbound transfer of 1,300 Bitcoin worth $54,303 from a cryptocurrency wallet labeled “German Government (BKA)”. The $75 million in Bitcoin transfers was distributed over three major cryptocurrency exchanges: Coinbase, Kraken, and Bitstamp.

Multiple Bitcoin transfers from the German government wallet

Cointelegraph’s investigation discovered that the German government wallet also transferred another 1,700 BTC to a different wallet address. The PeckShield team later confirmed to Cointelegraph that the wallet transferred 3,000 BTC: while the first 1,300 BTC were moved to centralized crypto exchanges, the remaining 1,700 were transferred to a separate crypto wallet, according to data from on-chain analytics platform Arkham Intelligence.

Impact on BTC selling pressure

Over the last two weeks, the German government has sent more than 3,000 BTC to several exchanges. The continuous whale transfers by the German and US governments, along with the impending Mt. Gox repayments, threaten to increase selling pressure on Bitcoin. Since February 2024, the German government-labeled wallet has housed 50,000 BTC, with a significant portion of that amount transferred away in recent months. Germany and other governments across the world have confiscated Bitcoin and other digital assets tied to illegal activity, and they organise auctions on occasion to sell their confiscated cryptocurrency holdings. The US government has sold a considerable amount of Bitcoin linked to the infamous dark web bazaar Silk Road.