In a recent development in the cryptocurrency market, the German government has made significant transactions involving Bitcoin on popular cryptocurrency exchanges. On Monday morning, a staggering amount of BTC worth over $28 million was transferred to the Coinbase and Bitstamp platforms, demonstrating the country’s ongoing efforts to manage its digital assets.
According to the analysis firm Arkham, addresses linked to the German government sent 250 BTC to each of the aforementioned exchanges. Additionally, another 500 BTC, also valued at $28 million, were sent to an unidentified address.
Data from Arkham Intelligence reveals that the German government currently possesses a total of 38.826 BTC, which were confiscated from criminal activities. These assets have a market value exceeding $2.23 billion. The majority of these funds were seized in January during an operation against piracy, a time when Bitcoin was valued at around $46,000.
The frequent actions of the German government in utilizing cryptocurrency exchanges have recently caused a decline in Bitcoin prices, which dropped below $55,000. However, the cryptocurrency has since shown signs of recovery, currently trading at approximately $57,000 and stabilizing after the recent fluctuations.
Over the weekend, independent Bundestag deputy Joana Cotar criticized the government for lacking a clear strategy in handling Bitcoin and expressed concerns about the potential consequences of these large-scale sales. Cotar stated, “I’m not sure if the government was or is aware of the consequences of their sales.”
The situation has also drawn the attention of controversial market figure Justin Sun, founder of Tron, who publicly offered to acquire the remaining BTC holdings of the German government. Sun’s aim is to minimize the impact on the market.
Industry analysts suggest that the selling pressure on Bitcoin may continue in the coming days, further intensified by the recent German transactions and the ongoing Mt. Gox case. Mt. Gox, an extinct exchange, is currently processing refunds for users affected by a hack that took place over a decade ago, with a total value of up to $7.7 billion.
Disclaimer: The views and opinions expressed in this article, whether by the author or individuals mentioned, are solely for informational purposes and should not be considered as financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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