Transfers of Bitcoin and Ethereum by German and US Authorities Attract Market Interest
German government moves 1,500 BTC, US government transfers 3,375 ETH
On July 1, 2024, the German government made a significant move in the cryptocurrency market by transferring 1,500 BTC, which is approximately $95 million, to various crypto exchanges. This action follows a series of transfers by the German authorities, totaling 2,700 BTC over the past two weeks. The transfers have drawn attention from market watchers and have led to a 6% drop in Bitcoin’s price.
In addition to Germany’s activity, the US government has also been active in the cryptocurrency space. It transferred 3,375 ETH, equivalent to $11.75 million, to an undisclosed address. This ETH came from seized funds from Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin. The US government also moved 11.84 BTC, worth approximately $743,000, from another seized funds address, and transferred 3,940 BTC to Coinbase Prime, an institutional trading platform.
These government transfers have sparked speculation about the strategic management of crypto holdings by both governments. Germany currently holds 44,692 BTC, worth $2.82 billion, stemming from a major seizure in 2013. The US government, on the other hand, remains the world’s largest holder of Bitcoin, with 213,530 BTC valued at over $13.8 billion.
The timing of these transfers is particularly interesting in light of recent regulatory developments in Europe. The European Union’s adoption of the Markets in Crypto-Assets Regulation (MiCA) could be influencing Germany’s actions. MiCA is expected to impact stablecoins and crypto asset services, potentially reshaping the European crypto landscape.
Despite these government actions, both countries still hold substantial amounts of cryptocurrency. These transfers raise questions about the future of cryptocurrency management by state actors and their potential impact on the broader crypto market and future cryptocurrency regulations.
