German Government Just Transferred Another 200 Bitcoin To Coinbase, What Is Happening?

In less than 48 hours, Arkham Intelligence has discovered a series of Bitcoin (BTC) transfers from a German government account to some popular exchanges.

Germany’s Bitcoin Transfers Raising Concerns

The blockchain analytics platform revealed that at about 21:17 UTC+8 on June 20, the German government transferred 200 Bitcoin (BTC) to the American cryptocurrency exchange Coinbase. These assets were worth approximately $65 million at the time. Notably, Bitcoin was trading at $64,916.31 at the time of this writing, down by 0.06%.

UPDATE: German Government Still Selling BTC > $195M So Far.

In the past 2 hours, the German Government sent $65M in BTC to 2 likely exchange deposits including Coinbase.

The German Government moved $600M BTC yesterday, sending $130M BTC to 4 likely exchange deposits including… pic.twitter.com/in2urlDBE0

— Arkham (@ArkhamIntel) June 20, 2024

Just the day before at about 16:47 UTC+8, Arkham Intelligence reported a transfer of 500 BTC each to Kraken and Bitstamp. This transfer of 1000 BTC was valued at approximately $65.24 million. According to Arkham, all the Bitcoin transferred to the two crypto exchanges and Coinbase came to about 1,500 by the close of the day.

After this initial transfer on Wednesday, the German government allegedly had a total of 47.859k BTC in its wallet, worth $3.1 billion.

Currently, there are only 46,859 BTC in the German government portfolio and it is valued at $3.04 billion. The reason behind these transfers is not yet clear but Miguel More, CEO of Arkham believes that the nature of the transfers signals a potential intention to sell the Bitcoin soon. If this is the case, it may complement the huge outflows that spot Bitcoin ETFs have seen recently.

Ethereum Set For Price Revival

Also, one X user thinks the country may be flipping its Bitcoin into Ethereum (ETH). While this is not certain, it is worth noting that Ethereum has caught the eyes of investors recently, especially with the United States Securities and Exchange Commission (SEC) suddenly deciding to drop the months-long investigations into the coin.

For the longest time, Ethereum bore the tag of “security”, imposed by the U.S. SEC. Though it was never officially declared, the SEC Chairman Gary Gensler never missed the opportunity to categorize the second largest crypto as a security rather than a commodity like Bitcoin. Unfortunately, this tag cast a shadow on Ethereum, almost limiting the debut of spot Ethereum ETFs. A few crypto exchanges that trade Ethereum were accused of violating federal securities law by listing unregistered ETH securities.

On May 23, the regulator approved 8 spot Ethereum ETFs, a move that suggested to the broader crypto community that the SEC may be changing its mind about the underlying digital asset. The dismissal of the Ethereum investigation further suggests that the incessant crackdown of crypto firms by the commission is gradually slowing down.

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