The German government has transferred another chunk of its massive Bitcoin reserves to exchanges. According to blockchain data, the German Federal Criminal Police Office (BKA) moved roughly $75 million worth of Bitcoin across multiple transactions on July 4th. The funds were spread across exchanges, including Coinbase, Kraken, and Bitstamp.
History of Bitcoin Movements
This comes after the government shifted around $315 million in bitcoin to various platforms since mid-June. Germany has offloaded over $390 million in Bitcoin in under a month. In 2013, the BKA seized nearly 50,000 bitcoin linked to the former operator of the film piracy website Movie2K. The stash is estimated to be worth $2.3 billion at today's prices.
Implications on Market
The steady flow of bitcoin to exchanges signals Germany's potential plans to liquidate portions of its reserves. This has sparked fears of impacts on Bitcoin's market price, which dipped below $58,000 this week. However, the amounts transferred so far make up a relatively small share of the BKA's massive Bitcoin trove. After the latest movements, Germany still holds around 40,000 Bitcoin.
Global Trends in Bitcoin Movements
The sales mirror similar transfers by the U.S. government in recent weeks. America also holds Bitcoin confiscated from criminal cases, prompting concerns it may be selling reserves. The liquidations come as creditor repayments from Mt. Gox's 2014 collapse appear set to begin in July. The timing threatens to compound selling pressure on Bitcoin. However, proponents argue the amounts equate to a tiny fraction of daily Bitcoin trading volumes.
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- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
How To
3 Ways to Invest in Gold for Retirement
It is important to understand the role of gold in your retirement plan. There are many ways to invest in gold if you have a 401k account at work. You might also consider investing in gold outside your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. If you don’t have any precious metals yet, you might want to buy them from a reputable dealer.
If you do invest in gold, follow these three simple rules:
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, deposit cash into your accounts. This will help protect you against inflation and keep your purchasing power high.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. Physical gold coins are easier to sell than certificates. Physical gold coins are also free from storage fees.
- Diversify Your Portfolio. – Do not put all your eggs into one basket. Also, diversify your wealth and invest in different assets. This helps to reduce risk and provides more flexibility when markets are volatile.
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