The German government transferred $175 million worth of Bitcoin to various exchanges, reducing its total to 40,359 Bitcoin.

Shortly after, Arkham Intelligence reported via X and its on-chain explorer that the wallet received inflows of 1,915 Bitcoin from Kraken, Bitstamp, and Coinbase.

Since June, the government has transferred around $315 million in Bitcoin to different platforms. In total, Germany has moved over $390 million in Bitcoin in less than a month.

In 2013, the BKA confiscated nearly 50,000 Bitcoin from the former operator of the piracy website Movie2K. At today's prices, these holdings are valued at approximately $2.3 billion.

The ongoing transfer of Bitcoin to exchanges suggests that Germany might be planning to liquidate parts of its reserves. This has raised concerns about potential impacts on Bitcoin's market price, which recently dropped below $58,000.

However, recent activity has increased the German government's total holdings back to 41,226 Bitcoin. It was noted that the German government sent out 1,915 Bitcoin and received the same amount back, which seems to indicate a test transaction.

These sales and transfers mirror similar actions by the U.S. government in recent weeks. The U.S. also holds Bitcoin seized from criminal activities, raising concerns about potential sales.

Additionally, the start of creditor repayments from the Mt. Gox collapse in 2014 is expected soon. This timing could potentially increase selling pressure on Bitcoin.

However, some argue that these amounts represent a small percentage of Bitcoin's daily trading volumes.

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