[German and U.S. governments invest $150 million in cryptocurrency]
The German and U.S. governments have attracted widespread attention for moving millions of dollars in crypto assets.
On July 1, the German government moved 1,500 BTC worth approximately $95 million to multiple cryptocurrency exchanges, and the U.S. government moved 3,375 ETH worth $11.75 million to an unknown address.
According to data from on-chain analytics platform Arkham Intelligence, the German government has moved 2,700 BTC to multiple exchanges over the past two weeks, including Bitstamp, Coinbase, and Kraken. The German government currently holds approximately 44,692 BTC, worth approximately $2.82 billion.
In the latest transfer, 400 BTC out of 1,500 BTC was moved to the aforementioned major cryptocurrency exchanges, while 750 BTC was transferred on June 26, with 250 BTC being transferred to Bitstamp and Kraken.
The U.S. government also made numerous transactions, particularly from the seizure of addresses belonging to Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin, according to data from Arkham Intelligence.
Following the transfer of approximately $743,000 in 11.84 BTC on June 30 from another seized funds address, the U.S. government moved all $11.75 million worth of ETH assets to a previously unlinked address.
These frequent government transfers indicate a move by both countries in strategically managing their holdings, with Germany potentially seeking to liquidate its holdings on major exchanges, while the U.S. government moving funds to unknown wallets could signal changes in ETH fund management .
Speaking to Cointelegraph, bitsCrunch CEO Vijay Pravin explained that BTC price has fallen by 6% since government trading began.
“I think this is the market’s response to potential downside risks. There is an air of caution among investors, with concerns that large-scale disposals by the German and U.S. governments could trigger a more pronounced decline in Bitcoin prices. If that happens, we We may see higher selling pressure and increased volatility."
The EU’s recently adopted Markets in Crypto-Assets Regulation (MiCA) may impact crypto-asset transfers in Germany. This regulation will affect stablecoins and crypto asset services and is expected to have a significant impact on the crypto market.
