The Bundeskriminalamt (BKA), or the Federal Criminal Police Office of Germany, moved 900 BTC on Tuesday, selling 400 of those to Coinbase and Kraken. Both exchanges received 200 BTC, respectively. On-chain analysis shows a wallet labeled German Government (BKA) moved the assets over three different transactions.
While two of those transactions sent assets to exchanges for liquidations, the third transferred 500 BTC to a wallet labeled ‘139Po.’ The reason for the transfer and the relationship the BKA has with it remains unknown. It is not the first time BKA has transacted value to it.
The BKA has sent bigger sums to it earlier, like 500 BTC on June 19 and 800 BTC the following day. It still has a lot left to move and sell, and we will know where these funds will get to in the coming days. This wallet still holds about 46,359 BTC, and fund flows from it have been a worry for adding pressure to the asset’s price. A mass selloff can cause BTC to dip further as the industry focuses on the wallet’s activity.
The BKA retrieved 50,000 BTCs in 2013 from Movie2k, a piracy site. It is finally selling the assets. Other news indicates Mt Gox will return creditor funds in about a week. The 140,000 BTC will return to circulation and can further push the coin’s price down. BTC dipped to below $60,000 on Tuesday as BKA-related transfers occurred and Mt Gox-related news spread across the ecosystem.
Nevertheless, analyst Willy Woo implied this is just a temporary setback, and BTC is still bullish. They assume the price correction will continue over a one-to-four-week period, after which the price will continue pushing upward again. “Eyeballing this model… probably 1-4 weeks more of cooling down before #Bitcoin price action is sufficiently boring.”
Photo by Ingo Joseph