Bitcoin the primary crypto asset has faced the latest bout of selling pressure as a crypto wallet linked to the German government sold another $52 million worth of Bitcoin earlier today.
The German government’s BKA wallet transferred over 832.7 Bitcoins in four separate transactions on Tuesday sparking speculation amongst crypto enthusiasts that the German government plans to sell off its entire cache of Bitcoin assets.
Arkham intelligence data gave a detailed report on the transactions highlighting their amounts and the crypto exchanges that were involved.
The German government-linked wallet sent 100 BTC to the Coinbase exchange, 150 BTC to Bitstamp, and over 32 BTC to the Kraken exchange per Arkham intelligence data.
The heaviest of the four transactions involving the transfer of 550 BTC worth over $34 million was sent to an unknown wallet that had previously received 500 BTC on June 25 and 800 BTC on June 20 from the German government-linked wallet.
The activities of the BKA wallet pose a threat to the Bitcoin price which just recovered from a monthly low. The wallet holds over 43,850 BTC which is worth over $2.75 billion and could trigger an intense selling pressure for Bitcoin if it continues to sell its assets.
Bitcoin price has struggled since June maintaining a downward trend and even hit a monthly low of $58,450 on June 24. The primary crypto asset has recorded a 7.3% drop in price value before bouncing back to its current $62,914 at the time of writing this report.
According to CoinGlass data, Bitcoin has maintained an important support level at the $61,500 mark and a drop below it would lead to a liquidation of over $1 billion worth of cumulative long positions across all exchanges.
In discussing the four transactions carried out by the German BKA wallet it is to be noted that besides the largest transfer worth over $32 million sent to an unknown wallet the remaining three transactions were sent to centralized exchanges.
This signifies that the German government is planning to sell off its Bitcoin assets which poses a lot of selling pressure to Bitcoin as an asset.
The wallet in question holds about 50,000 BTC and the funds are believed to have been seized from Movie 2k a pirated movie website operator.
What to Know
- The German government-linked wallet here serves as a Crypto whale and its activities its significant enough to affect the price of Bitcoin. The selling pattern of large Bitcoin holders serves as a valuable cue to investors because large sell orders by such crypto whales could create more downward price pressure.
- Early this year, the German police seized over $2.1 billion worth of Bitcoin from Movie 2K which allowed users to download over 880,000 copies of pirated films in 5 years. The German government is now selling off large swathes of these seized Bitcoin assets piling selling pressure on Bitcoin.
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