The German Federal Criminal Police (BKA) is making waves in the cryptocurrency world with its ongoing Bitcoin liquidation process. On Monday, the BKA transferred a significant amount – 1500 Bitcoin (BTC) valued at roughly $95 million – to multiple crypto exchanges, including industry giants like Coinbase, Bitstamp, and Kraken.
This latest move comes just weeks after a similar transaction in June, where $220 million worth of Bitcoin was transferred. These actions are part of a meticulously planned strategy by the German government, which began in 2023, to liquidate Bitcoin seized from illegal activities.
The liquidated Bitcoin originates from a 2013 bust of the notorious film piracy website Movie2k.to. Back then, the BKA confiscated a staggering amount – nearly 50,000 BTC – valued at over $2 billion at the time. Despite the recent sales, Germany still holds a substantial amount, approximately 44,692 BTC (worth $2.82 billion) in government wallets. This cautious approach indicates a long-term liquidation plan.
The BKA’s strategy of using multiple exchanges suggests a two-pronged approach: minimizing market impact while ensuring an efficient sales process. Analysts are closely monitoring these developments, particularly the potential impact on Bitcoin’s price. The cryptocurrency market thrives on volatility, and large-scale liquidations by governments can create selling pressure.
Also Read: Bitcoin Poised for Breakout as Global Liquidity Heats Up: Analysts Eye 40% Surge
This isn’t the first time governments have dipped their toes into crypto transfers. Similar actions by the U.S. government have also drawn scrutiny. The combined effect of these liquidations on the market price of Bitcoin remains an intriguing question for investors and enthusiasts alike.
As the situation unfolds, the cryptocurrency community is eagerly awaiting further developments. The market’s reaction to these substantial movements will be a key indicator of the long-term impact of government involvement in the crypto sphere.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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