US and German governments move $150M in crypto

US and German governments move 0M in crypto

Recent cryptocurrency transactions by the German and United States governments have caught the attention of the crypto community.

Arkham Intelligence data shows that Germany has moved substantial amounts of Bitcoin (BTC), while the U.S. has transferred Ethereum (ETH) from seized funds. On July 1, Germany relocated 1,500 BTC (approximately $95 million) to various crypto exchanges.

Concurrently, Arkham Intelligence data also showed that the U.S. moved 3,375 ETH (about $11.75 million) to an unidentified address. Furthermore, data from the same source also indicates that the German government has transferred 2,700 BTC to multiple exchanges, including Bitstamp, Coinbase, and Kraken, over a two-week period. Germany currently holds 44,692 BTC, valued at roughly $2.82 billion.

The U.S. government, specifically from an address holding funds seized from Estonian crypto entrepreneurs, has made significant transactions. After moving 11.84 BTC (about $743,000) on June 30, the U.S. transferred its entire ETH holdings of $11.75 million to a previously unassociated address.

Analysis and market impact

These government transfers suggest strategic fund management. Germany may be considering liquidating its holdings on major exchanges, while the U.S. appears to be shifting its ETH fund management strategy.

Vijay Pravin, CEO of bitsCrunch, told Cointelegraph that there has been a noticeable 6% decline in Bitcoin’s price since these government transactions began. He suggests this could be the market reacting to potential downside risk:

I think it is the market waking up to potential downside risk. There’s caution in the air among investors that large-scale disposals by the German and U.S. governments could potentially trigger a more pronounced downturn in Bitcoin’s price. If that happens, we could see a higher selling pressure and increased volatility.

The European Union’s recently adopted Markets in Crypto-Assets Regulation (MiCA) could be influencing Germany’s crypto transfers. This regulation is expected to significantly impact stablecoins and crypto asset services, potentially reshaping the European crypto market.

https://readwrite.com/us-and-german-governments-move-150m-in-crypto/

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