The German government has transferred millions of dollars in confiscated bitcoin to major bitcoin and cryptocurrency exchanges Kraken and Coinbase, according to blockchain analysis firm Arkham.
The transfers originated from a wallet connected to the German Federal Criminal Police Office (BKA). In 2013, the BKA confiscated almost 50,000 bitcoin from a movie piracy website.
On Tuesday, the BKA wallet moved $24 million in bitcoin in two transactions to Kraken and Coinbase. An additional $30 million in bitcoin was sent to an unknown wallet that is not affiliated with an exchange.
Arkham data shows These transfers follow previous moves of $195 million in bitcoin to the exchanges on June 19 and 20. Last week more than $425 million was transferred.
While the German government still holds the majority of the seized bitcoin, transfers to exchanges may indicate an intention to liquidate some of the assets.
The sale of government-held bitcoin introduces potential downward pressure on prices. However, the amounts moved so far represent a relatively small portion of bitcoin's daily trading volume.
However, bitcoin fell below $60,000 on Tuesday amid this news. The German government's bitcoin wallet still contains more than 46,000 bitcoin worth almost $3 billion.
For German police, the value of bitcoin seized in illegal activities has increased dramatically. Selling even a fraction provides a windfall. However, concerns remain over potential impacts on the broader bitcoin market.
