From February until June 19, the German government-labeled wallet stored 50,000 Bitcoin and removed 6,500 Bitcoin.

On June 19, a Bitcoin wallet bearing the name "German Government (BKA)" was detected by the blockchain analytics company Arkham, piqueing the interest of the public. Many people think the German government is selling its Bitcoin holdings because of the wallet movements.

The crypto wallet moved about 6,500 Bitcoin on June 19 after holding close to 50,000 Bitcoin since February 2024, according to Arkham data. The money is thought to have been taken from Movie2k, the company that runs the website for unlicensed films.

On June 19, the wallet associated with the German government underwent four operations. Firstly, it withdrew 6,500 Bitcoin worth approximately $425 million to the wallet address "bc1q0unygz3ddt8x0v33s6ztxkrnw0s0tl7zk4yxwd." Secondly, it withdrew 2,500 Bitcoin worth $154 million to its own address.

After receiving 6,500 BTC, the wallet address transferred 2,500 BTC to a different wallet address, "bc1qq0l4jgg9rcm3puhhfwaz4c9t8hdee8hfz6738z." The freshly obtained monies were then sent in four 500 BTC transactions using this wallet address. Two of these transactions were transferred to unlabeled private accounts, and the other two were sent to the cryptocurrency exchanges Kraken and Bitstamp.

Currently, 43,359 BTC, or $2.83 billion, are held in the German government-labeled wallet. Even though not all of the transferred money was liquidated, a lot of well-known cryptocurrency figures discussed the possible repercussions of selling such a sizable Bitcoin holding.

A cryptocurrency trader suggests that the recent surge in short positions and the downturn in the Bitcoin market might be attributed to the German government's extensive selling activity. This selling spree could be exerting downward pressure on Bitcoin prices, contributing to the market's current negative trend.