German Bitcoin Liquidation: $95M BTC Sent to Exchanges

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The German BKA (Federal Criminal Police) made another important move this month, and yes, people are paying attention. The company has stepped up its crypto liquidation process. They transferred 1500 Bitcoin (BTC) to multiple crypto exchanges for approximately $95 million. This has happened just in one day, on Monday.

This latest transaction is part of a series of transfers that began on June 19. Around $220 million worth of Bitcoin was moved to various exchanges.

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German Government Continues Bitcoin Liquidation

German Government BTC Transactions

1500 BTC (95 million) were transferred to exchanges. As you might expect, they include Bitstamp, Coinbase, and Kraken. Furthermore, using multiple exchanges may be a strategy to minimize market impact. This will, of course, also ensure an efficient liquidation process.

This latest transfer is not an isolated incident but part of an ongoing and carefully planned liquidation strategy developed by the German government in 2023. In the last few weeks, German authorities have been steadily moving Bitcoin.

Germany still holds 44.692 BTC (approximately 2.82 billion) in government wallets. And yes, despite the recent transfers, these sums represent only a fraction of Germany’s total holdings from the 2013 seizure. The large remaining balance shows that German authorities are careful with this aspect.

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Background of the Seized Bitcoin

The Bitcoin in question originates from a large-scale seizure in 2013, when BKA confiscated nearly 50,000 BTC from the operators of Movie2k.to, a well-known film piracy website. At that time, Bitcoin was valued at over $2 billion.

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Global Context

Germany seems to be following the U.S. government’s strategies for transferring funds. These transfers could create a selling potential. For this reason, analysts are paying close attention.

These BTC exchange transfers and similar actions by other governments have, of course, sparked speculation within the cryptocurrency community. The impact on Bitcoin’s market price adds an element of intrigue to the situation. Furthermore, this will affect engagement in the ongoing developments in the crypto market.

The market’s reaction to these substantial movements is very interesting. We are curious to find out how this situation evolves.