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- The German law enforcement agency BKA has moved about 6500 Bitcoin to two top exchanges.
- The movement underscores the different government holdings of BTC and the selloff strain they pose.
On Wednesday, the German federal police reportedly moved Bitcoin (BTC) worth approximately 670 billion Yen to a crypto deposit wallet. This movement has sparked speculations on whether a dump to $63,000 is on the horizon for Bitcoin.
6,500 Bitcoin Moved from BKA Wallet
Blockchain data analysts at Arkham identified the movement of 6,500 BTC from a wallet linked to the German Federal Criminal Police Office (BKA). The transaction involved sending the Bitcoin to a new address before depositing portions at crypto exchanges Kraken and Bitstamp. The deposits are estimated at around 5 billion Yen, suggesting a potential sell-off.
The transferred assets originated from a seizure by Saxony police in January, targeting a suspected pirate website. The total haul from that operation amounted to 50,000 BTC, making it a substantial capture for the German law enforcement agency.
This news comes amidst a larger conversation about government holdings of Bitcoin. The United States currently holds the most Bitcoin among all governments, with an estimated 212,847 BTC reported as of April. This is an increase from the 207,189 Bitcoin holdings previously reported by Crypto News Flash.
While the U.S. government ranks as the world’s highest Bitcoin holder, the Wall Street Journal points out its indifference to fluctuations in the cryptocurrency’s value, unlike other investors. In April, the government transferred 30,174 BTC to the Coinbase crypto exchange, as Crypto News Flash earlier indicated.
El Salvador is another country holding a large amount of Bitcoin. As of early May, the government held 5,750 Bitcoin. The country’s move follows its groundbreaking decision to adopt Bitcoin as legal tender in 2021. Per Crypto News Flash’s earlier announcement, El Salvador has launched its own proof-of-reserves website to track its Bitcoin holdings.
Is a Dump to $63,000 Incoming for BTC?
Whether the German police plan to sell the recently seized BTC or hold onto it remains unknown. However, many investors and analysts are watching to see if the price of the world’s leading cryptocurrency will drop to $63,000.
At press time, BTC is trading at $65,847, demonstrating a 1.08% increase in the past day. The market capitalization is pegged at $1.2 trillion, while the trading volume is $20.4 billion.
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Given the current market dynamics and Bitcoin’s historical behavior following substantial governmental moves, a drop to $63,000 is possible. This projection comes in light of market reactions to the potential liquidation of huge Bitcoin holdings. The spot ETF market has also been recording outflows lately.
Despite these dynamics, it is difficult to make any firm predictions due to the well-known volatility of the crypto market. Besides, new research from Glassnode reveals many Bitcoin investors remain profitable, with over 87% of the circulating supply held in profit.
