Germany’s federal criminal police office, BKA, has reportedly shifted 400 Bitcoin (BTC) to two well-known U.S.-based crypto exchanges- Kraken and Coinbase.
This move comes after a significant downward trend, causing the price of Bitcoin to drop below $60,000 for the first time since late February.
Data from Arkham Intelligence reveals that the blockchain wallet linked to the German agency transferred the funds in two installments to the exchanges, each containing 200 BTC ($12.22 million). The transactions took place today at 7:38 (UTC).
The crypto community has been intrigued by this development, speculating on the reason behind the transfer. Typically, sending cryptos to exchanges indicates the intention to sell them for fiat or convert them to other tokens. However, blockchain data cannot confirm what happens to these funds once they reach exchanges. This kind of transaction is considered a bearish signal that could potentially impact the price of the asset.
Shortly after transferring funds to Coinbase and Kraken, the agency moved an additional 500 BTC to an undisclosed address. As of now, the German agency wallet holds 46,395 BTC, valued at $2.83 billion, with a loss of $9.7 million in the last 24 hours.
This is not the first time that the wallet has shifted hundreds of BTC to exchanges. Last week, it sent 700 BTC to Coinbase in two installments—200 and 500 BTC, respectively. It also moved another 800 BTC to an unknown wallet on June 20. In total, the wallet has transferred 3,400 BTC, worth $207.87 million, while also receiving 1,400 BTC in the same period.
The potential sale of 400 BTC is seen as one of the factors contributing to the recent negative price actions of Bitcoin. Other factors, such as the repayment of BTC from Mt. Gox, large outflows from Bitcoin spot ETFs, and intense selling pressure from whales, have also played significant roles in Bitcoin’s recent underperformance.
At the time of writing, Bitcoin is trading at $61,140, indicating a 0.18% decline in the past day. Interestingly, Bitcoin’s trading volume has increased by 42.3% over the past 24 hours, reaching $37.51 billion.
Disclaimer: This article is for informational purposes and should not be considered financial advice. The opinions expressed are those of the author and do not reflect The Crypto Basic’s viewpoint. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses.