German Government Transfers 400 Bitcoins to Coinbase and Kraken

A blockchain wallet associated with Germany’s Federal Criminal Police Agency (BKA) reportedly transferred 400 Bitcoin (BTC) to two well-known U.S. crypto exchanges – Kraken and Coinbase.

The development comes after a sharp drop in the price of bitcoin, which fell below $60,000 for the first time since late February.

Data from Arkham Intelligence shows that the blockchain wallet associated with the German agency transferred the funds to the two exchanges in two batches, each containing 200 BTC ($12.22 million). These transactions took place at 7:38 UTC today.

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Possible reasons behind the transaction
As expected, the development has attracted attention from members of the crypto community, who have tried to unravel the motivations behind the move. Typically, cryptocurrency being sent to an exchange usually means the owner plans to sell it for fiat currency or convert it into other tokens.

However, blockchain data cannot verify what happened to the funds after they were transferred to the exchange. This type of trade is considered a bearish signal and can have an impact on the asset’s price action.

Other large-scale developments
Shortly after the outflows to Coinbase and Kraken, the institution transferred an additional 500 BTC to an untagged address. As of now, the German institution’s wallet currently holds 46,395 BTC, worth $2.83 billion. In the past 24 hours, wallets have lost $9.7 million.

This is not the first time the wallet has transferred hundreds of Bitcoins to exchanges. Last week, it transferred 700 BTC to Coinbase in two transactions – 200 BTC and 500 BTC.

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In addition to Coinbase, it also transferred 800 BTC to an unknown wallet on June 20. In total, 3,400 BTC worth $207.87 million has been transferred out of the wallet. Conversely, it also received 1,400 BTC during the same time period.

Bitcoin faces huge selling pressure
Meanwhile, one of the reasons for the recent poor performance of Bitcoin price is mainly attributed to the possible sale of 400 BTC.

Other factors, such as Mt. Gox’s BTC repayments, massive outflows from Bitcoin spot ETFs, and intense selling pressure from large investors, are also influencing Bitcoin’s recent performance.

As of now, the top crypto asset is trading at $61,140, indicating a drop of 0.18% over the past day. Interestingly, Bitcoin’s trading volume increased by 42.3% in the past 24 hours to $37.51 billion.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may reflect the author’s own opinions and do not necessarily reflect the opinions of The Crypto Basic. Readers are advised to perform thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.