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Germany Offloads 1,300 BTC Worth $75M to Crypto Exchanges Amid Market Dip
ByAinvest
Saturday, Jul 6, 2024 2:20 am ET1min read
Germany transferred 1,300 Bitcoin worth $75.69 million to exchanges Coinbase, Kraken, and Bitstamp, following earlier transfers. This series of moves comes from the German government's seizure of Bitcoin from the operators of a movie piracy website in 2013. The transferred Bitcoin might contribute to selling pressure, which could affect the market, as previous large-scale selloffs have influenced Bitcoin's value.
The German government's recent transfer of approximately $75.69 million worth of Bitcoin to major exchanges Coinbase, Kraken, and Bitstamp has raised eyebrows in the cryptocurrency community. This move follows a series of transfers totaling over $390 million in under a month [1]. The German Federal Criminal Police Office (BKA) seized these Bitcoin funds from the operators of a movie piracy website back in 2013 [1].
These transfers could potentially lead to selling pressure on the market, as large-scale selloffs have historically influenced Bitcoin's value [1]. The German government's Bitcoin holdings, estimated to be worth around $2.3 billion at today's prices, make up a significant portion of its total assets [1].
While the amounts transferred so far represent a relatively small share of the BKA's Bitcoin trove, the liquidation of portions of these reserves could trigger further selling pressure [1]. Similar concerns have arisen regarding the U.S. government's recent transfers of confiscated Bitcoin [2].
It's essential to note that the timing of these transfers coincides with creditor repayments from Mt. Gox's 2014 collapse, which threaten to compound selling pressure on Bitcoin [1]. However, proponents argue that the amounts equate to a tiny fraction of daily Bitcoin trading volumes, mitigating potential market impacts [1].
Sources:
[1] Nasdaq. (2022, July 7). German Government Moves Over $75 Million Bitcoin Exchanges. https://www.nasdaq.com/articles/german-government-moves-over-75-million-bitcoin-exchanges
[2] CryptoNews. (2022, July 5). Germany Transfers Another 1,300 BTC to Exchanges as Market Dips. https://cryptonews.com/news/germany-transfers-another-1300-btc-to-exchanges-as-market-dips.htm
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