The German Federal Criminal Police Office, also known as the Bundeskriminalamt (BKA), has recently sold off all its remaining bitcoin holdings. This move involved numerous transactions that added to the selling pressure on the cryptocurrency market. According to reports from Arkham Intelligence, the BKA’s wallet that was once filled with bitcoins now holds a total of 0 bitcoins.
The BKA initially acquired 50,000 bitcoins, which was worth billions of dollars, through a seizure related to the media piracy site Movies2K. However, the agency has been gradually offloading these coins onto the open market and through over-the-counter (OTC) services over the past month. The most recent transaction involved sending 3846.05 BTC (equivalent to $223.81 million) to Flow Traders and 139Po, which is likely an institutional deposit or OTC service.
This massive sell-off by the German government has had a significant impact on the price of bitcoin, causing it to drop from over $70,000 to below $60,000. The anticipation of repayments from the Mt. Gox exchange, which is set to begin soon, has also contributed to the decline in the cryptocurrency’s value.
In an effort to mitigate the selling pressure and stabilize the market, there have been offers from various parties to purchase the BKA’s bitcoin holdings. Tron’s founder, Justin Sun, expressed interest in buying the stockpile off-market, while a German Member of Parliament urged the agency to hold onto its bitcoin reserves to foster innovation and build confidence in the country’s crypto industry.
While the BKA’s selling activity may have temporarily subsided, there is concern about the potential impact of the upcoming Mt. Gox repayments. Creditors are set to receive a total of 140,000 bitcoins by the end of September, which could lead to a significant increase in selling pressure as many creditors may choose to sell off a large portion of their assets to realize profits.
The Mt. Gox exchange’s collapse, which resulted from a series of hacks over two years, remains one of the most notorious events in the history of the cryptocurrency ecosystem. The hackers made off with a substantial amount of bitcoin, leaving creditors unable to access their funds for over a decade. As the repayments loom closer, the crypto market braces for potential turbulence and increased volatility.