A cryptocurrency wallet labeled as belonging to the German Government (BKA) has recently sold over $54 million worth of Bitcoin, raising concerns about potential impacts on the market.
Details of the Transactions
On June 25, the German government’s wallet executed three individual transactions, totaling 900 Bitcoin:
- First Transaction: 200 BTC sent to Coinbase.
- Second Transaction: 200 BTC sent to Kraken.
- Third Transaction: 500 BTC, worth over $30 million, sent to an unknown wallet labeled “139Po.”
The wallet “139Po” has previously received 800 BTC on June 20 and another 500 BTC on June 19 from the German government, according to Arkham Intelligence.
Despite these transactions, the German government-labeled wallet still holds a substantial 46,359 Bitcoin, valued at over $2.8 billion.
Market Implications: Potential Impact on Bitcoin Price
The significant selling pressure introduced by the German government’s transactions could potentially drive Bitcoin’s price below the crucial $60,000 mark. Bitcoin has already been in a downtrend, falling 11% over the past month and more than 7% in the past week, trading just above $61,000 as of 9:40 am UTC on Bitstamp.
Popular analyst Willy Woo suggests that Bitcoin might experience a correction lasting up to four weeks before resuming its price rally. In a June 22 X post, Woo noted:
Eyeballing this model… probably 1-4 weeks more of cooling down before #Bitcoin price action is sufficiently boring.
Chart: Intensity of speculators playing casino games. https://t.co/GC0NlFgT6W pic.twitter.com/B3bmD6C5vG
— Willy Woo (@woonomic) June 22, 2024
Additional Selling Pressure from Germany and Mt. Gox?
The German government-labeled wallet first drew attention on June 19 with a 6,500 BTC transfer worth over $425 million. The majority of these Bitcoins are being transferred to centralized exchanges, indicating potential sales. The wallet, which held nearly 50,000 BTC since February 2024, is believed to contain funds seized from the operator of the pirated movie website Movie2k.
Upcoming Mt. Gox Repayments
July could see even more Bitcoin selling pressure with the expected repayments from the collapsed cryptocurrency exchange Mt. Gox. Over $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors, who have been waiting for more than a decade to recover their funds. This influx of Bitcoin into the market could further impact prices.
The German government’s recent Bitcoin transactions and the impending Mt. Gox repayments are significant factors that could influence Bitcoin’s market dynamics. Traders and investors should closely monitor these developments, as they may introduce considerable volatility and potential price drops in the short term.
