Germany Moves $24.3M Bitcoin to Coinbase and Kraken, BTC Tumbles

Germany's government moved 900 Bitcoins, valued at $54 million, in three transactions on June 25, according to Arkham Intelligence data. Of these, 400 BTC, worth nearly $24.3 million, were deposited into two major crypto exchanges, Kraken and Coinbase. 

The remaining 500 BTC were transferred to an unknown wallet address. This substantial movement has sparked intense interest and speculation within the cryptocurrency landscape.

Background and Market Impact

The Bitcoin in question was seized from the movie piracy site Movie2k[dot]to. Earlier this year, the German Federal Criminal Police Office (BKA) took control of nearly 50,000 BTC from the site. This recent transfer adds to a series of large-scale Bitcoin sales by the German authorities. 

Just days ago, the government moved almost 1,700 BTC to exchanges like Coinbase, Kraken, and Bitstamp.

According to Arkham Intelligence, Germany still holds 46,359 BTC, valued at over $2 billion. This large stash continues to shadow market sentiment, as the potential for further sales looms.

The market responded to these moves. Bitcoin's price dropped about 1.5% after but recovered later, now trading around $61,095. Worth noting that over the past week, BTC has experienced a 6% decline. 

Increased Selling Pressure

The German government's sell-off adds significant selling pressure to an already jittery market. This sell-off, combined with other market factors, has pushed Bitcoin's price below $60,000. On June 25, the price dipped to $58,500, its lowest point since early May. 

However, the increased selling pressure is not solely due to the German government's actions. 

There has been a noticeable outflow from spot Bitcoin ETFs, further contributing to the bearish market conditions. This trend of large-scale Bitcoin transactions by governmental bodies has led to heightened activity among Bitcoin whales, suggesting a power struggle between market bulls and bears.

Despite the government's sell-off, companies like MicroStrategy remain bullish on Bitcoin. Adding to its considerable holdings, the software company recently purchased $786 million worth of Bitcoin.