What does the German and US government transfer of large amounts of BTC and ETH mean?

Author: Josh O'Sullivan, CoinTelegraph; Compiled by Wuzhu, Golden Finance

The German and US governments have attracted widespread attention after transferring millions of dollars in cryptocurrency assets.

On July 1, the German government transferred 1,500 BTC worth approximately $95 million to multiple cryptocurrency exchanges, while the US government transferred 3,375 ETH worth $11.75 million to an unknown address.

German Government BTC Transfer

According to data from Arkham Intelligence, an on-chain analysis platform, the German government has transferred 2,700 BTC to multiple exchanges in the past two weeks.

These exchanges include Bitstamp, Coinbase, and Kraken. The German government currently holds 44,692 BTC, worth approximately $2.82 billion.

In the most recent transfer, 400 BTC of the 1,500 BTC transferred were sent to the aforementioned major cryptocurrency exchanges, while 750 BTC was transferred on June 26, of which 250 BTC were sent to Bitstamp and Kraken.

German government cryptocurrency movement data for the past four days provided by Arkham Intelligence. Source: Arkham Intelligence

US Government ETH Transfers

According to Arkham Intelligence data, the US government conducted large transactions, specifically the addresses of funds seized from Estonian cryptocurrency entrepreneurs Potapenko and Turogin.

Previously, the U.S. government transferred 11.84 BTC worth about $743,000 from another seized funds address on June 30, and has since moved all of its $11.75 million ETH assets to a previously unlinked address.

Data on the U.S. government's cryptocurrency movements over the past two years provided by Arkham Intelligence. Source: Arkham Intelligence

Analysis & Implications

The recent frequent fund transfers between the two governments suggest that they strategically manage their holdings, and Germany may be looking to liquidate its holdings on major exchanges.

The US government’s transfer of funds to an unknown wallet may indicate a shift in ETH fund management rules.

The EU’s recently passed Markets in Crypto-Assets regulation (MiCA) may affect cryptocurrency transfers in Germany.

MiCA will have an impact on stablecoins and crypto-asset services and is expected to shake up the crypto market significantly.