Frequent bitcoin transfers to central exchanges suggest that the government plans to sell its bitcoin holdings, worth $2.75 billion.
A cryptocurrency wallet branded as “German Government (BKA)” sold $52 million worth of Bitcoin, raising doubts about the government’s desire to sell the entirety of its massive Bitcoin holdings.
The wallet linked to the German government transferred 832.7 BTC
, in four individual transactions on July 2, in which the wallet sent 100 BTC to Coinbase, 150 BTC to BitStamp, and 32.74 BTC to Kraken, according to Arkham Intelligence data.
The largest share of Bitcoin - 550 (BTC) - worth more than $32 million, was sent to the wallet "139Po", which remains unknown despite having previously received funds from the German government, including 500 BTC on June 25 and 800 BTC on... June 20.
Tracking the selling patterns of large entities holding Bitcoin can give investors valuable signals about the price of Bitcoin, as large sell orders may create more downward pressure on the price.
The German government could impose more Bitcoin selling pressure
The price of Bitcoin has been on a downtrend since the beginning of June, falling more than 7.3% over the past month. Bitcoin found a local bottom above $58,450 on June 24, before bouncing back above the current $62,000 level, according to BitStamp data.
The BKA-branded wallet, which holds more than 43,850 Bitcoin, worth more than $2.75 billion, may threaten the price of Bitcoin with potential selling pressure.
Bitcoin was able to gather significant support at the $61,500 level. However, the next step will lead to the liquidation of more than $1 billion in long positions accumulated across all exchanges, according to Coinglass data.
Is the German government really selling Bitcoin?
Along with the major transfer, worth $32 million, the rest of the bitcoin was transferred to centralized exchanges, suggesting that the German government may be looking to sell bitcoin.
The German government-branded wallet first raised doubts about a possible bitcoin sale on June 19, when it transferred 6,500 bitcoins, worth more than $425 million.
Prior to the transfer, the wallet had held approximately 50,000 bitcoins since February 2024, when the funds were believed to have been seized from the operator of the movie pirate website Movie2k.
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