German Government Empties Bitcoin Wallets After Billions Sent to Exchanges and Market Makers
In a flurry of transactions culminating this week, the German government has finalized the liquidation of its Bitcoin holdings, according to data from Arkham Intelligence, a leading analytics firm in the blockchain space.
Starting Monday, Germany initiated a series of substantial transfers, effectively clearing out its Bitcoin wallets by Friday afternoon. This marks a major move as the government aimed to liquidate assets seized from criminal activities, with transfers totaling billions of dollars in recent days.
Previously holding approximately $3.4 billion worth of Bitcoin just a month ago, Germany’s holdings dwindled to around $2.9 billion by July 1. The push to exchanges commenced in earnest when the wallets still held $2.2 billion earlier this week, ultimately resulting in complete depletion.
Key recipients of Germany’s Bitcoin transfers include major exchanges like Coinbase, Kraken, and Bitstamp, alongside market makers such as Cumberland and others. While these transfers do not inherently signify immediate sales into the market, previous movements have seen funds return to government wallets post-exchange, indicating a strategic intent to liquidate.
Market reactions have been closely monitored, particularly amid concerns over potential market destabilization. Despite fears of a significant impact, Bitcoin has shown resilience, reflecting a 3% increase over the week, with a 1% rise in the past 24 hours, currently trading at approximately $58,300.
It is worth noting that German authorities announced the seizure of 50,000 bitcoins valued at $2.17 billion, marking the country’s largest crypto confiscation to date.
It was done in collaboration with the Federal Criminal Police Office (BKA), the FBI, and a Munich-based forensic IT firm in efforts targeting commercial money laundering linked to a defunct German piracy website operational until 2013.
