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US and German Government Bitcoin Moves Raise Market Concerns
US and German Government Bitcoin Moves Raise Market Concerns
The German government has again made significant Bitcoin transactions, moving large amounts of the cryptocurrency after similar actions last week contributed to a decline in the price of Bitcoin. On Monday morning, wallets known to be linked to the German government moved 1,500 BTC (about $94.94 million) to various destinations, including Bitstamp, Coinbase, and Kraken, according to Arkham Intelligence.
Germany is one of the largest state holders of Bitcoin, with about $2.8 billion of the cryptocurrency seized from various operations, including a movie piracy website. Last month, the EU nation began liquidating some of its holdings, unloading more than $195 million worth of BTC in 24 hours. The sell-off has put downward pressure on the price of Bitcoin, sending it down about 3.5%.
The U.S. government also made some notable cryptocurrency transactions on Monday. Wallets associated with U.S. authorities transferred 3,375 ETH, worth $11.75 million, to an unknown address. This follows last week’s transfer of 3,940 BTC, worth about $248 million, to a Coinbase Prime account. Those funds were seized from Banmeet Singh, an Indian drug lord who sold narcotics via dark web marketplaces. Singh, who pleaded guilty earlier this year, gave up his cryptocurrency holdings as part of his plea deal, marking the largest cryptocurrency and cash seizure ever made by the U.S. Drug Enforcement Administration (DEA).
The U.S. government currently holds more than $13.8 billion in cryptocurrency, with over 97% of that in Bitcoin, according to Arkham. As the largest government holder of cryptocurrency, the U.S.’s movements in the market are closely monitored by traders and analysts.