A “German Government (BKA)” labeled cryptocurrency wallet has sold another $52 million worth of Bitcoin, sparking suspicions that the government is selling its vast Bitcoin holdings.
The wallet associated with the German government transferred 832.7 Bitcoin (BTC) across four individual transactions on July 2.
The wallet sent 100 BTC to the Coinbase exchange, 150 BTC to Bitstamp, and over 32 BTC to the Kraken exchange, according to Arkham Intelligence data.
The lion’s share, or 550 BTC worth over $32 million, was sent to the wallet “139Po,” which remains unknown, but has previously received funds from the German government, including 500 BTC on June 25 and 800 BTC on June 20.
Tracking the selling patterns of large Bitcoin holding entities can give investors valuable cues about Bitcoin price since large sell orders can create more downward price pressure.
German government could introduce more Bitcoin selling pressure
The BKA-labelled wallet could pose a threat to Bitcoin's price due to more potential selling pressure since it holds over 43,850 BTC and is worth over $2.75 billion.
Bitcoin price has been in a downtrend since the beginning of June, falling over 7.3% during the past month. BTC found a local bottom above the $58,450 mark on June 24 before bouncing back above the current $62,000 mark, according to Bitstamp data.
Bitcoin has amassed significant support at the $61,500 mark. However, a move below would liquidate over $1 billion worth of cumulative leveraged long positions across all exchanges, according to Coinglass data.
Is German gov’t actively selling BTC?
Besides the largest transfer worth $32 million, the rest of the Bitcoin was transferred to centralized exchanges, which signals that Germany’s government is potentially looking to sell Bitcoin.
Cointelegraph has approached Germany’s Federal Criminal Police Office (BKA) for comment.
The German government-labeled wallet first sparked suspicions of potential Bitcoin selling on June 19, when it executed a 6,500 BTC transfer worth over $425 million.
Prior to the transfer, the wallet held nearly 50,000 BTC since February 2024. The funds are believed to have been seized from the pirated movie website operator Movie2k.