The German and U.S. governments have recently executed significant Bitcoin and Ethereum transfers, drawing considerable market attention.
The German government moved substantial amounts of Bitcoin (BTC), while the U.S. government transferred Ethereum (ETH) from seized funds.
On July 1, the German government transferred 1,500 BTC, valued at around $95 million, to multiple crypto exchanges. Concurrently, the U.S. government moved 3,375 ETH, worth approximately $11.75 million, to an unknown address.
In detail, the German government has transferred a total of 2,700 BTC to various exchanges, including Bitstamp, Coinbase, and Kraken, over the past two weeks. Currently, Germany holds 44,692 BTC, worth about $2.82 billion. In its recent activity, 400 of the 1,500 BTC were sent to major exchanges, while 750 BTC were moved on June 26, with 250 BTC directed to Bitstamp and Kraken.
Source: Arkham Intelligence
The U.S. government’s ETH transfers involved moving funds from an address linked to seized assets from Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin. On June 30, 11.84 BTC, worth around $743,000, were moved from another seized funds address, and the entire $11.75 million in ETH holdings were then sent to a previously unassociated address.
Source: Arkham Intelligence
These frequent transfers by both governments indicate strategic fund management. Germany appears to be preparing to liquidate its holdings on major exchanges, while the U.S. government’s transfer to an unknown wallet might suggest a shift in ETH fund management.
Vijay Pravin, CEO of bitsCrunch, noted that Bitcoin’s price has “slumped by 6%” since these government transactions began, suggesting the market is reacting to potential downside risks. Investors are cautious, fearing that large-scale disposals by the German and U.S. governments could trigger a more significant downturn in Bitcoin’s price, leading to increased selling pressure and volatility.
The European Union’s recently adopted Markets in Crypto-Assets Regulation (MiCA) could also influence Germany’s crypto transfers. MiCA is expected to substantially impact stablecoins and crypto asset services, potentially affecting the broader crypto market.
