Bitcoin
German Federal Police transfer 670 billion yen in Bitcoin
- German law enforcement agency BKA transferred around 6,500 Bitcoins to two major exchanges.
- The move highlights the different government holdings in BTC and the liquidation pressure they represent.
On Wednesday, the German federal police supposedly transferred Bitcoin (BTC) worth approximately 670 billion yen to a crypto deposit wallet. This move has sparked speculation about whether a $63,000 dump is on the horizon for Bitcoin.
6,500 Bitcoins transferred from BKA wallet
Blockchain data analysts at Arkham identified the movement of 6,500 BTC from a wallet linked to the German Federal Criminal Police (BKA). The transaction involved sending Bitcoin to a new address before depositing installments on cryptocurrency exchanges Kraken and Bitstamp. Deposits are estimated at around 5 billion yen, suggesting a potential sell-off.
The transferred assets originated in a seizure carried out by the Saxon police in January, targeting a suspected piracy website. The total result of this operation was 50,000 BTC, making it a substantial capture for the German law enforcement agency.
This news comes amid a broader conversation about government holdings in Bitcoin. The United States currently holds the largest number of Bitcoins of any government, with an estimated 212,847 BTC reported in April. This is an increase from the 207,189 Bitcoin holdings previously reported by Crypto News Flash.
Although the US government is the largest holder of Bitcoin in the world, the Wall Street Journal points out its indifference to fluctuations in the cryptocurrency’s value, unlike other investors. In April, the government transferred 30,174 BTC to crypto exchange Coinbase, according to Crypto News Flash previously indicated.
El Salvador is another country that holds a large amount of Bitcoin. At the beginning of May, the government held 5,750 Bitcoins. The country’s decision follows its groundbreaking decision to adopt Bitcoin as legal tender in 2021. By Previous Crypto News Flash AnnouncementEl Salvador has launched its own proof of reserves website to track its Bitcoin assets.
Is a $63,000 dump coming for BTC?
It is not yet known whether the German police plan to sell the recently seized BTC or keep it. However, many investors and analysts are watching to see if the price of the world’s leading cryptocurrency will fall to $63,000.
At press time, BTC is trading at $65,847, demonstrating a 1.08% increase from the previous day. The market capitalization is estimated at US$1.2 trillion, while the trading volume is US$20.4 billion.
Given current market dynamics and Bitcoin’s historical behavior following substantial government moves, a drop to $63,000 is possible. This projection comes in light of market reactions to the potential liquidation of huge Bitcoin holdings. The spot ETF market has also seen outflows recently.
Despite this dynamic, it is difficult to make firm predictions due to the known volatility of the crypto market. Additionally, a new Glassnode survey reveals many Bitcoin investors remain profitablewith over 87% of the circulating supply retained as profit.
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