Reason for $425 Million Bitcoin Transaction Revealed

Approximately $425 million worth of Bitcoin (BTC) was transferred yesterday, some of it to cryptocurrency exchanges.

According to records from blockchain analysis company Arkham, a government agency in Germany was behind this transaction.

Transferred thousands of Bitcoins

An address that Arkham labeled as the Federal Criminal Police Office in Germany first transferred 6,500 Bitcoins (BTC) to an address with the code “bc1q0unygz3ddt8x0v33s6ztxkrnw0s0tl7zk4yxwd”. These BTCs were then sent back to the original address.

According to blockchain data, approximately $32 million worth of Bitcoin was sent to the Kraken exchange. It was also seen that a similar amount of Bitcoin was sent to Bitstamp.

Kraken exchange came to the fore with its recent security vulnerability.

Can create sales pressure

According to the statements of Arkham CEO Miguel More, this may lead to a selling pressure in the market.

According to More, who said that according to Arkham data, this wallet sent $130 million worth of Bitcoin to "service wallets", which means that the German police "intend to sell them soon".

According to Arkham records, the German Federal Criminal Police Office seized approximately 50 thousand Bitcoins from a pirated movie site called Movie2k.to, which was active in 2013. These Bitcoins were “voluntarily” given to the German police in January. Their value at the time was more than $2 billion.