German Government Just Transferred Another 200 Bitcoin To Coinbase, What Is Happening?

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As a seasoned crypto investor, I’ve seen my fair share of market volatility and government actions. The recent news about Germany selling large amounts of Bitcoin (BTC) to popular exchanges like Coinbase, Kraken, and Bitstamp has raised some concerns in the community.

Within a span of only 48 hours, Arkham Intelligence unearthed a trail of Bitcoin (BTC) transactions originating from a German government account and ending up in well-known cryptocurrency exchanges.

Germany’s Bitcoin Transfers Raising Concerns

As a blockchain analyst, I’ve uncovered some intriguing data. At around 21:17 UTC+8 on June 20, I identified a transaction where the German government transferred 200 Bitcoin (BTC) to Coinbase. The value of these Bitcoins amounted to approximately $65 million at that moment in time. It’s important to note that at the time I’m writing this, Bitcoin was trading for roughly $64,916.31, representing a slight decrease of 0.06% compared to the transaction value.

UPDATE: German Government Still Selling BTC > $195M So Far.
Over the past 2 hours, the German Government transferred approximately 65 million dollars in Bitcoin to two potential cryptocurrency exchange wallets, among which are Coinbase and others.
As a financial analyst, I would rephrase that statement as follows: Yesterday, I identified a transaction worth approximately 600 million US dollars in Bitcoin (BTC) originating from the German Government’s digital wallet. Among the recipients, I noted four potential cryptocurrency exchanges, to which the government sent around 130 million BTC each.
— Arkham (@ArkhamIntel) June 20, 2024

The day prior, around 16:47 UTC+8, Arkham Intelligence disclosed that two transfers of 500 BTC apiece were made, one to Kraken and the other to Bitstamp. The total value of these transactions was approximately $65.24 million. By the end of the day, Arkham noted that a combined amount of 1,500 BTC had been transferred to Kraken, Bitstamp, and Coinbase.

Following the first transaction on Wednesday, reports claim that the German government held approximately 47,859 Bitcoin in their digital wallet, equivalent to around $3.1 billion in value.

At present, the German government holds approximately 46,859 Bitcoins, with a market value of around $3.04 billion. The origin of these transactions remains unclear. However, Miguel More, the CEO of Arkham, speculates that these transfers could indicate an upcoming plan to sell the Bitcoin holdings. If true, this move might coincide with the significant withdrawals observed in spot Bitcoin Exchange-Traded Funds (ETFs) lately.

Ethereum Set For Price Revival

An individual user of X believes there’s a possibility the country could be converting its Bitcoin holdings to Ethereum (ETH). Although this isn’t confirmed, it is noteworthy that Ethereum has recently piqued investor interest, notably following the unexpected halt of the SEC’s long-standing probes into the coin.

Ethereum has carried the label of being a “security” in the eyes of the U.S. SEC for an extended period. Although not formally announced, SEC Chairman Gary Gensler consistently referred to Ethereum as a security instead of classifying it as a commodity like Bitcoin. This classification has negatively impacted Ethereum, hindering the launch of spot Ethereum ETFs. Some cryptocurrency exchanges dealing with Ethereum have been charged with violating federal securities laws by listing unregistered Ethereum securities.

On May 23rd, the regulatory body gave its approval to eight Ethereum spot ETFs (Exchange-Traded Funds). This decision was perceived as a possible indication by the larger crypto community that the Securities and Exchange Commission (SEC) could be reconsidering its stance towards Ethereum as a digital asset. The termination of the Ethereum probe also hints at a potential lessening of the SEC’s relentless crackdown on crypto companies.

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2024-06-20 19:14