German Receives Small CoinJoin Deposits Amid ‘Negligible’ 6M Bitcoin Sales

German Receives Small CoinJoin Deposits Amid ‘Negligible’ $326M Bitcoin Sales

The German government’s Bitcoin wallet received a small amount of Sats from a CoinJoin address amid significant selling activity.

On-chain data from crypto analytics platform Arkham Intelligence shows that German government wallets received less than $10 in three transactions from CoinJoin addresses today.

Germany Bitcoin
Germany CoinJoin Bitcoin transaction (Source: Arkham)

CoinJoin transactions combine multiple Bitcoin transactions to obscure the flow of funds and improve user privacy on-chain.

Recently, these transactions have come under intense scrutiny after the U.S. government stepped up its push for privacy protocols. Authorities say malicious actors like the North Korean-backed Lazarus Group have used these tools for money laundering and other shady activities.

For this reason, several Bitcoin wallet providers, including Wasabi Wallet, have discontinued the feature on their platforms.

Bitcoin sale continues

According to on-chain data, the German government continued its trend of selling off the top digital asset over the past day.

Arkham reported that the government sent 6,306.9 BTC, worth an estimated $362.12 million, to Kraken, Cumberland, and two unlabeled addresses, likely belonging to an institutional depository or over-the-counter service provider.

This recent activity has reduced the government’s Bitcoin holdings to 22,847 BTC, worth $1.32 billion. Last month, Germany began its massive BTC sell-off, after initially seizing 50,000 BTC from a piracy website in January.

Meanwhile, the government’s unusual on-chain transactions have sparked mixed reactions within the crypto community. On July 8, blockchain analytics firm SpotOnChain questioned the German authority’s decision to sell directly through centralized exchanges and the subsequent withdrawal of some of this BTC after it was transferred to these platforms.

Despite these sales, experts note that the Bitcoin market remains unaffected. Ki Young Ju, CEO of CryptoQuant, stated:

“Government BTC sales are negligible compared to overall liquidity, and most Mt. Gox BTC holdings have not been transferred to creditors.”

CryptoSlate’s Data shows that the price of BTC is in a downward trend. The price has dropped by around 10% over the past seven days to $57,270 at the time of going to press.

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