The German and United States governments have recently engaged in significant cryptocurrency transactions involving Bitcoin and Ethereum respectively, garnering substantial attention from the financial community. The transactions included the German government moving around 1,500 BTC, valued at approximately $95 million to various crypto exchanges. The U.S. government transferred approximately 3,375 ETH, valued at around $11.75 million, the destination of this transfer is currently unknown.
The info provided by Arkham Intelligence, an onchain analytics platform, reveals that the German government has moved about 2,700 BTC to several exchanges over the last fortnight. The exchanges in question included Bitstamp, Coinbase, and Kraken. At this point, the German government is said to possess about 44,692 BTC, valued at approximately $2.82 billion. Recent transactions led to 400 out of the 1,500 BTC being transferred to major crypto exchanges. Additionally, there was a significant transfer of 750 BTC on June 26 to Bitstamp and Kraken.
In the case of the United States, large-scale transactions have been seen from an address holding funds seized previously from Estonian cryptocurrency entrepreneurs, Sergei Potapenko and Ivan Turogin. On June 30, around 11.84 BTC, estimated to be worth $743,000, was moved from the seized funds. Following this, the entire Ethereum holdings of the U.S. government, amounting to $11.75 million, was moved to a disconnected address.
The regular recent transfers by the German and U.S. governments hint towards strategic management of these crypto funds. Germany’s significant activity on major exchanges may indicate an intention to liquidate their holdings, while the U.S.’s choice of an unknown wallet might point to a broader shift in their Ethereum fund management tactics.
Amid these governmental transactions, Bitcoin’s price has seen a 6% slump, as observed by Vijay Pravin, CEO of bitsCrunch. Pravin believes that this could be due to the market’s response to the potential downside risk. He anticipates increased selling pressure and market volatility if these governments decide to dispose of their cryptocurrency holdings on a large scale. Furthermore, the recent implementation of the Markets in Crypto-Assets Regulation (MiCA) by the European Union could be a significant factor influencing Germany’s cryptocurrency activity.