Coinspeaker
German Government Moves $344M in Bitcoin to CEX and OTC Desks
The German government has resumed the transfer of Bitcoin (BTC) to cryptocurrency exchanges and Over-the-Counter (OTC) trading desks. According to blockchain analytics platform Arkham Intelligence, crypto wallets linked with the German government transferred approximately $344 million worth of BTC. These numerous transfers are still a source of concern to investors and the broader crypto market.
German Government Holds $1B in Bitcoin
For context, about $73 million worth of this Bitcoin went to centralized exchanges with Kraken receiving as much as $44 million while Coinbase Global Inc (NASDAQ: COIN) got $39 million in BTC.
Another $98 million was sent to crypto trading firms amongst which is Amsterdam’s Flow Traders and Chicago’s Cumberland DRW. The former received $66 million in two transactions while the latter bagged $31.5 million.
There is also an unidentified wallet that received $132 million from the German government in two transactions. Noteworthy, this will not be the first time that most of these wallet addresses are receiving Bitcoin from the German government. Reports have it that this week alone, the said government has moved almost $1.3 billion worth of Bitcoin to some of the aforementioned platforms.
On Monday, the German government transferred a total of 4,900 BTC to Coinbase, Bitstamp, Kraken, Cumberland DRW, and Flow Traders. Only Cumberland DRW received as much as 133.723 BTC at the time. The total transfers made on Monday summed up to $900 million.
After this massive Monday dump, Arkham Intelligence stated that the German government still has 32,488 BTC worth an estimated $1.855 billion. By the end of Tuesday, it had reduced to only $1 billion. However, the German government received 3,673 Bitcoins from centralized exchanges to counterbalance the Tuesday sale.
German Government Turns to OTC Sales
Meanwhile, on-chain analytics platform Spot On Chain had earlier speculated about a potential shift towards OTC sales for the German government’s Bitcoin dump. The frequency and size of the transfers formed the basis for this speculation. Initially, the German government was making these transfers to only centralized exchanges.
However, as the transfers began to go to crypto market makers like Cumberland DRW and Flow Traders, the possibility of OTC transactions became more pronounced. For many investors, especially large institutions, OTC sales are a preferred option as it helps them minimize their risk.
The shift towards this form of transaction suggests that the German government may have recognized the negative impact its transfers have on the market. Plus, Bitcoin has improved significantly in the last 24 hours. The flagship cryptocurrency has registered a 2.29% increase in the past 24 hours and is trading at $58,634.72, per CoinMarketCap data.
On one hand, Joana Cotar, the German MP from Bundestag, still thinks her government should desist from offloading Bitcoin. She thinks Germany should borrow a feather from countries that are trying to hold Bitcoin as a strategic reserve asset.
German Government Moves $344M in Bitcoin to CEX and OTC Desks
