Will German Bitcoin Sales Push Prices Below $60K Amid Mt. Gox Payouts?

German Federal Criminal Police Office reportedly transferred 250 BTC (valued at approximately $15.4 million) to exchange platforms Bitstamp.


The German Federal Criminal Police Office reportedly transferred 250 BTC (valued at approximately $15.4 million) to exchange platforms Bitstamp and Kraken, marking a continued trend of government transactions involving Bitcoin.

This transaction is part of a series following the January seizure of 50,000 BTC from the Movie2k piracy site, shedding light on how Germany manages these assets.

Tracking the Trail of Transfers

Arkham, an on-chain analytics provider, reported that the German authorities distributed 125 BTC each (worth $7.7 million) to Bitstamp and Kraken. Additionally, they moved 500 BTC, amounting to $30.9 million, to an enigmatic address known as “139Po,” which is suspected to be another exchange platform.

This series of transactions began last week and includes moving approximately $150 million worth of Bitcoin to well-known exchange addresses and another $147 million to the “139Po” address.

Despite these significant transfers, the German government still holds about 45,609 BTC, currently valued at nearly $2.8 billion.

Market Impact and Future Movements

The Bitcoin market has seen a downturn following these large transfers, with a price drop of around 6% during this period. While there’s no official clarification on the rationale behind these transactions, speculation suggests that Germany may be liquidating part of its seized Bitcoin assets.

Market analyst Willy Woo commented on the situation, noting, “We might see a cooling down period in Bitcoin’s market behaviour as these large movements are absorbed.” This comes as the community also braces for potential market shifts due to the upcoming Mt. Gox creditor repayments in July.

With Mt. Gox set to distribute Bitcoin and Bitcoin Cash worth over $9.4 billion to around 127,000 creditors—who have been awaiting their return for more than a decade—the impact could significantly depress Bitcoin’s prices further.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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