Update 1.25 pm UTC: This article has been revised to incorporate statements from Vijay Pravin, CEO of bitsCrunch.
There has been significant attention surrounding the recent crypto transfers made by the German and United States governments. The German government has conducted substantial Bitcoin (BTC) transfers, while the U.S. government has moved Ether (ETH) from seized funds.
On July 1, the German government transferred 1,500 BTC, equivalent to approximately $95 million, to multiple crypto exchanges. Similarly, the U.S. government moved 3,375 ETH, worth $11.75 million, to an undisclosed address.
According to data from Arkham Intelligence, an onchain analytics platform, the German government has transferred 2,700 BTC to various exchanges within the past two weeks. These exchanges include Bitstamp, Coinbase, and Kraken. At present, the German government holds 44,692 BTC, valued at around $2.82 billion.
In the most recent transfers, 400 BTC out of the 1,500 transferred were sent to the aforementioned major crypto exchanges. Additionally, on June 26, 750 BTC was moved, with 250 going to Bitstamp and Kraken.
Moving on to the U.S. government’s ETH transfers, Arkham Intelligence data reveals that large transactions have been made specifically from the address holding funds seized from Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin. On June 30, the U.S. government moved 11.84 BTC, worth approximately $743,000, from another seized funds address. Subsequently, the entire $11.75 million worth of ETH holdings were transferred to a previously unassociated address.
The frequent transfers made by both governments indicate a strategic management of the held funds, with Germany potentially aiming to liquidate its holdings on major exchanges. The movement of funds by the U.S. government to an unknown wallet could suggest a broader shift in ETH fund management.
In a conversation with Cointelegraph, Vijay Pravin, CEO of bitsCrunch, noted that the price of BTC has declined by 6% since the commencement of government transactions.
It is worth considering the potential impact of the Markets in Crypto-Assets Regulation (MiCA), recently adopted by the European Union, on Germany’s crypto transfers. MiCA is expected to have a significant impact on the crypto market as it affects both stablecoins and crypto asset services.
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