The German government recently made significant transactions in the cryptocurrency market, specifically Bitcoin, by transferring large sums to well-known exchanges. On Monday morning, BTC worth more than $28 million was sent to Coinbase and Bitstamp, indicating that the country is actively managing its digital assets.
According to cryptocurrency analysis firm Arkham, addresses associated with the German government sent 250 BTC to each of the mentioned exchanges. Additionally, another 500 BTC, also valued at $28 million, were sent to an unidentified address.
Arkham Intelligence data reveals that the German government currently holds a total of 38.826 BTC seized from criminal activities, with a market value exceeding $2.23 billion. Most of these assets were confiscated in January during an anti-piracy operation when Bitcoin was valued at around $46,000.
The German government’s frequent use of cryptocurrency exchanges has recently caused a drop in Bitcoin prices, with values falling below $55,000. However, at the time of writing, the cryptocurrency was showing signs of recovery, trading at approximately $57,000 and stabilizing after recent declines.
Over the weekend, independent Bundestag deputy Joana Cotar criticized the government’s lack of a clear strategy in handling Bitcoin and expressed concerns about the potential consequences of these large-scale sales.
The situation has also caught the attention of controversial market figure Justin Sun, founder of Tron, who publicly offered to acquire the German government’s remaining BTC holdings in an effort to minimize the impact on the market.
Industry analysts predict that the selling pressure on Bitcoin may continue in the coming days, further amplified by the recent German liquidations and the ongoing Mt. Gox case. Mt. Gox, an extinct exchange, is expected to refund its users affected by a hack that occurred over a decade ago, totaling up to $7.7 billion.
Disclaimer: The views and opinions expressed in this article, including those of the author and individuals mentioned, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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