The transfers originated from a wallet linked to the German Federal Criminal Police Office (BKA). In 2013, the BKA confiscated nearly 50,000 Bitcoin from a film piracy site.

On June 25th, the BKA wallet transferred $24 million worth of Bitcoin across two transactions to Kraken and Coinbase. Additionally, $30 million in Bitcoin was sent to an unidentified wallet not associated with any exchange.

According to Arkham data, these transactions follow previous movements of $195 million in Bitcoin to exchanges on June 19th and 20th. Over $425 million has been transferred in the past week.

Although the German government retains the majority of the seized Bitcoin, the transfers to exchanges might indicate a plan to liquidate some assets.

Selling Bitcoin held by the government could exert downward pressure on the price. However, the amounts transferred so far are relatively small compared to daily Bitcoin trading volume.

Despite this, Bitcoin fell below $60,000 on Tuesday following the news. The German government's Bitcoin wallet still holds over 46,000 Bitcoin, valued at nearly $3 billion.

For German authorities, the Bitcoin seized from illegal activities has significantly appreciated in value. Selling even a portion offers an unexpected financial gain, but there are concerns about potential effects on the broader Bitcoin market.

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