The German government has transferred another part of its massive bitcoin reserves to exchanges.
According to blockchain dataThe German Federal Criminal Police Office (BKA) moved about $75 million worth of bitcoin across multiple transactions on July 4. The funds were spread across exchanges including Coinbase, Kraken, and Bitstamp.
This comes after the government has transferred about $315 million worth of bitcoin across various platforms since mid-June. Germany has transferred more than $390 million in bitcoin in less than a month.
In 2013, the BKA seized about 50,000 bitcoins belonging to the former operator of the film piracy website Movie2K. This stash is estimated to be worth $2.3 billion at today's prices.
The continued flow of bitcoin to exchanges indicates Germany's possible plan to sell part of its reserves. This has raised fears of the impact on bitcoin's market price, which fell below $58,000 this week.
However, the amount transferred so far is a relatively small portion of the BKA's vast bitcoin reserves. After the latest movements, Germany still holds around 40,000 bitcoins.
The sale mirrors similar transfers made by the US government in recent weeks. The US also holds bitcoin seized in criminal cases, raising concerns that it could sell off its reserves.
The liquidation comes at a time when repayments to creditors from the 2014 collapse of Mt Gox are set to begin in July. This risks increasing selling pressure on Bitcoin over time.
However, proponents argue that these amounts represent only a small portion of daily bitcoin trading volume.
