The German law enforcement agency BKA has transferred approximately 6,500 Bitcoin to two prominent exchanges, highlighting the different government holdings of BTC and the potential impact of selling off these assets.
On a recent Wednesday, the German federal police reportedly moved Bitcoin (BTC) valued at around 670 billion Yen to a cryptocurrency deposit wallet, sparking speculation about a possible drop in Bitcoin’s price to $63,000.
Data analysts at Arkham identified the movement of 6,500 BTC from a wallet associated with the German Federal Criminal Police Office (BKA). The transaction involved transferring the Bitcoin to a new address before depositing portions at the Kraken and Bitstamp exchanges, amounting to an estimated 5 billion Yen, indicating a potential sell-off.
The assets were seized by the Saxony police in January during a raid on a suspected pirate website, resulting in a total seizure of 50,000 BTC, a significant gain for the German law enforcement agency.
This development adds to the ongoing discussion about government holdings of Bitcoin. The United States currently holds the largest amount of Bitcoin among all governments, with an estimated 212,847 BTC as of April, an increase from the previously reported 207,189 BTC.
While the U.S. government holds the most Bitcoin globally, it has shown little concern for fluctuations in the cryptocurrency’s value compared to other investors. In April, the government transferred 30,174 BTC to the Coinbase exchange, according to Crypto News Flash.
El Salvador is another country with a substantial amount of Bitcoin, holding 5,750 BTC as of early May. This move follows the country’s pioneering decision to adopt Bitcoin as legal tender in 2021, with El Salvador launching its own proof-of-reserves website to track its Bitcoin holdings, as previously announced by Crypto News Flash.
The intentions of the German police regarding the recently seized BTC remain unclear, leaving investors and analysts speculating about the possibility of Bitcoin’s price dropping to $63,000.
At the moment, BTC is trading at $65,847, showing a 1.08% increase in the past day, with a market capitalization of $1.2 trillion and a trading volume of $20.4 billion.
Given the current market conditions and Bitcoin’s historical response to significant government movements, a drop to $63,000 is a plausible scenario. Market reactions to the potential liquidation of large Bitcoin holdings and recent outflows in the spot ETF market contribute to this projection.
Despite the market uncertainties, Glassnode’s latest research indicates that a large majority of Bitcoin investors are still profitable, with over 87% of the circulating supply held at a profit.