A blockchain wallet associated with Germany’s federal criminal police office, BKA, reportedly moves 400 Bitcoin (BTC) to two prominent U.S.-based crypto exchanges- Kraken and Coinbase.
This development follows a massive downtrend, which saw the price of Bitcoin crash below $60,000 for the first time since late February.
Data from Arkham Intelligence shows that the German agency-affiliated blockchain wallet transferred the funds in two tranches to the exchanges, with each containing 200 BTC ($12.22 million). The transactions occurred today at exactly 7:38 (UTC).
Possible Reason Behind the Transaction
As expected, the development caught the attention of crypto community members, who sought to unravel the motive behind the movement. Typically, cryptos sent to exchanges usually suggest that the owner plans to sell them for fiat or convert them to other tokens.
However, blockchain data cannot verify what happens to these funds after they are sent to exchanges. This type of transaction is considered a bearish signal that could potentially affect the asset’s price action.
Other Large Movements
Shortly after the outflow to Coinbase and Kraken, the agency moved an additional 500 BTC to an unlabeled address. At the time of writing, the German agency wallet now holds 46,395 BTC, worth $2.83 billion. The wallet has lost $9.7 million over the past 24 hours.
This is not the first time that the wallet has transferred hundreds of BTC to exchanges. Last week, it transferred 700 BTC to Coinbase in two tranches—200 and 500 BTC, respectively.
Besides Coinbase, it moved another 800 BTC to an unknown wallet on June 20. Overall, the wallet has transferred 3,400 BTC, worth $207.87 million. Conversely, it has also received 1,400 BTC in the same timeframe.
Bitcoin Faces Intense Sell Pressure
Meanwhile, the potential sale of 400 BTC is primarily seen as one of the factors negatively impacting Bitcoin’s price actions lately.
Other factors, such as Mt. Gox’s BTC repayment, large outflows from Bitcoin spot ETFs, and intense selling pressure from whales, have also played significant roles in Bitcoin’s recent underperformance.
The top crypto asset is trading at $61,140 at press time, signaling a 0.18% decline in the past day. Interestingly, Bitcoin’s trading volume is up 42.3% over the past 24 hours to $37.51 billion.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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