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German Government Transfers Millions of Dollars Worth of Bitcoin to Exchanges

German Government Transfers Millions of Dollars Worth of Bitcoin to Exchanges
Germany moved millions in seized Bitcoin to Kraken and Coinbase, possibly signaling plans to sell and pressure Bitcoin's price downward.

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German Federal Criminal Police Office (BKA) Transfers $24 Million Worth of Bitcoin to Exchanges

In a surprising move, the German Federal Criminal Police Office (BKA) has transferred $24 million worth of Bitcoin to cryptocurrency exchanges Kraken and Coinbase. This comes after the BKA confiscated nearly 50,000 Bitcoin from a film piracy site in 2013.

In addition to the exchange transfers, $30 million in Bitcoin was sent to an unidentified wallet not associated with any exchange. These transactions follow previous movements of $195 million in Bitcoin to exchanges on June 19th and 20th, with over $425 million transferred in the past week.

While the German government still holds the majority of the seized Bitcoin, the transfers to exchanges have raised concerns about a potential plan to liquidate some assets. This could exert downward pressure on the price of Bitcoin, although the amounts transferred so far are relatively small compared to daily trading volume.

Despite this, Bitcoin fell below $60,000 on Tuesday following the news. The German government's Bitcoin wallet still holds over 46,000 Bitcoin, valued at nearly $3 billion.

The appreciation in value of the seized Bitcoin presents an unexpected financial gain for the German authorities, but there are concerns about potential effects on the broader Bitcoin market. The move has sparked speculation about the government's intentions with the seized assets.

It remains to be seen how these developments will impact the cryptocurrency market and whether the German government will continue to offload its Bitcoin holdings.