Bitcoin transfer from the Federal Criminal Police Office
The Federal Criminal Police Office (BKA) transferred about $75 million in Bitcoin to various exchanges such as Coinbase, Kraken and Bitstamp on July 4. This comes after the movement of around $315 million in Bitcoin since mid-June. In less than a month, this makes a total movement of over $390 million. These funds stem from a seizure of almost 50,000 Bitcoin in 2013 from the former operator of the piracy website Movie2K. These Bitcoins are worth an estimated $2.3 billion today.
Germany and Bitcoin reserves
The ongoing transfers of Bitcoin to exchanges suggest that Germany may be planning to liquidate some of its reserves. This has contributed to a decline in the price of Bitcoin, which has fallen below $58,000 this week. Despite the recent sales, Germany still holds about 40,000 Bitcoin.
Comparison with the USA and Mt. Gox
Germany's selling is comparable to recent activity by the U.S. government, which is also holding bitcoin from criminal seizures, raising concerns about potential market impacts. These pressures are compounded by the impending repayment to creditors of the 2014 Mt. Gox collapse, which is expected to begin in July. Despite fears of market disruption, some argue that these moves represent only a small fraction of daily bitcoin trading volumes.
