The German government transferred millions of seized bitcoins to major bitcoin and cryptocurrency exchanges Kraken and Coinbase, according to blockchain analysis firm Arkham.
The transfers originated from a wallet linked to the German Federal Criminal Police Office (BKA). In 2013, the BKA seized nearly 50,000 bitcoins from a movie piracy website.
On Tuesday, the BKA wallet transferred $24 million worth of Bitcoin via two transactions to Kraken and Coinbase. An additional $30 million in Bitcoin was sent to an unknown non-exchange wallet.
Arkham data appears These transfers follow previous movements of $195 million in Bitcoin to exchanges on June 19 and 20. More than $425 million was transferred last week.
While the German government still holds the majority of the seized Bitcoin, the transfers to exchanges may indicate an intention to liquidate some of the assets.
The sale of government-owned Bitcoin creates potential downward pressure on prices. However, the amounts transferred so far represent a relatively small portion of Bitcoin’s daily trading volume.
However, Bitcoin fell below $60,000 on Tuesday amid this news. The German government’s bitcoin wallet still contains more than 46,000 bitcoins worth nearly $3 billion.
For the German police, the value of Bitcoin seized as a result of illegal activities has increased significantly. Selling even a small portion provides a windfall. However, concerns remain about the potential impacts on the broader Bitcoin market.