Bitcoins are an important digital currency. However, the German Federal Criminal Police is currently selling thousands of them, causing the price to drop. This unsettles investors who have invested a lot of money.
What is the Federal Criminal Police doing? At the beginning of the year 2024, the German BKA had confiscated about 50,000 Bitcoins worth 3 billion euros, including during a raid in the case of the illegal portal movie2k.to.
As reported by our colleagues at cointelegraph.com, the German agency is currently selling large amounts of Bitcoins. Overall, the BKA is said to have conducted at least 13 Bitcoin transactions around July 2 and 3. According to reports, this involves 1,300 coins worth 68 million euros. In total, about 10,000 coins of the entire stock are said to have been moved.
And the sale and transfer are likely having a significant impact on the official Bitcoin price.
The Bitcoin price is dropping because the Federal Criminal Police is selling thousands of coins
Why are investors worried? The price of Bitcoin is not very stable and is extremely dependent on fluctuations. This also makes Bitcoin a risky investment.
In particular, large purchases and sales can have varying effects on the value of Bitcoin. Since the beginning of July, Bitcoin has lost more than 7,000 euros in value. Compared to last month (June), the price has fallen by 22 percent:
- On July 1 at 6:00 PM, the price was still about 59,300 euros,
- On July 4 around 5:00 PM, the price had dropped to about 51,500 euros.
Market observers and experts suspect that the sudden and sharp price drop is due to the Federal Criminal Police, which has now sold thousands of Bitcoins in several transactions.
However, some doubt whether the transactions of the BKA could solely influence the price so significantly.
What is the BKA doing with the money? In a statement to BTC-ECHO, the BKA merely explained that “the proceeds from confiscated assets flow to the respective state treasury, where the competent court is located according to § 60 of the Penal Enforcement Code.” This means that the state of Saxony is likely to be pleased with a few additional million.
If indeed 10,000 Bitcoins have been sold, the BKA still has about 40,000 Bitcoins left. That equates to about 2 billion euros.
A German programmer has also owned cryptocurrencies worth millions for many years. But he has a problem: he has forgotten his password. Now a hacker organization wants to help him, but apparently the owner of the USB stick is not very willing: A German still has 2 attempts to access 222 million euros – An expert wants to help him, but he declines the help
