The German According to blockchain analytics firm Arkham, the government has transferred millions in seized Bitcoins to major Bitcoin and crypto exchanges Kraken and Coinbase.
The transfers came from a wallet connected to Germany’s Bundeskriminalpolizei (BKA). In 2013, the BKA seized nearly 50,000 Bitcoin from a movie piracy website.
On Tuesday, the BKA wallet moved $24 million in Bitcoin in two transactions to Kraken and Coinbase. Another $30 million in Bitcoin was sent to an unknown wallet that is not affiliated with an exchange.
Data from Arkham shows that these transfers follow previous movements of $195 million in Bitcoin to exchanges on June 19 and 20. In the past week, more than $425 million has been moved.
While the German government still holds the majority of the seized Bitcoin, transfers to exchanges may indicate an intention to liquidate some of the assets.
Selling government-held Bitcoins creates potential downward price pressure. However, the amounts moved so far represent a relatively small portion of daily Bitcoin trading volume.
Despite this, Bitcoin dipped below $60,000 on Tuesday amid the news. The German government’s Bitcoin wallet still holds over 46,000 Bitcoin, worth nearly $3 billion.
For German police, the value of Bitcoin seized in illegal activities has increased dramatically. Selling even a fraction of it yields an unexpected windfall. However, concerns remain about the potential impact on the broader Bitcoin market.