💥Breaking!! German Authorities May Soon Sell $425 Million in Bitcoin
German authorities are on the brink of conducting one of the largest Bitcoin sales in recent years. On-chain data reveals that an entity, possibly linked to the German Federal Criminal Police Office (BKA), transferred 6,500 Bitcoins, valued at approximately $425 million, on June 19.
Identification of the Transaction
Arkham Intelligence identified the address involved in this transaction on January 31 through their on-chain monitoring systems. About four months ago, Arkham Intelligence announced on the social media platform X that they had identified an address supposedly belonging to the BKA.
Background
In January, Arkham stated, "The German Federal Criminal Police Office (BKA) seized nearly 50,000 BTC ($2.12 billion) from the operators of Movie2k.to, a movie piracy site active in 2013."
Bitcoin Transfer Details
According to Arkham, the BKA received the Bitcoins in mid-January following a "voluntary transfer" from the suspects. Besides the 6,500 BTC, the wallet also moved some funds to another unknown wallet, which subsequently sent several batches of 500 BTC to exchanges like Bitstamp and Kraken.
Despite these transfers, the BKA wallet still holds 47,859 BTC, valued at over $3 billion. The German government has not yet commented on the case, so it remains unclear if the government will sell the BTC soon.
Market Impact
In recent years, governments, including that of the United States, have increasingly engaged directly with centralized cryptocurrency exchanges instead of using the auction process. This shift means that liquidity is more likely to enter the open market faster than if sold to private buyers.
The potential sale of the 6,500 Bitcoins seized by the BKA could significantly impact the cryptocurrency market. With an increased supply of BTC on exchanges, there is an expectation that the price of Bitcoin might drop further.
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