Why Bitcoin Price Fell Suddenly Below $65K

German Police Move $425M in Bitcoin to Exchanges, Causes Market Turbulence as Bitcoin Drops Below $65K. On June 19th, the German Federal Criminal Police Office (BKA) transferred a significant amount of Bitcoin, leading to market volatility. The BKA moved $425 million in Bitcoin, causing the Bitcoin price to dip below $65,000.

Large Bitcoin Transfer by BKA

According to Arkham, the BKA sent 6,500 BTC, worth $425 million, to various wallets, including exchanges Kraken and Bitstamp. These transfers raised concerns about a possible sell-off. Of the total amount, $32 million worth of Bitcoin was sent to Kraken and another $32 million to Bitstamp. This move suggests that the BKA might be planning to sell some of its Bitcoin holdings.

Arkham CEO Miguel More mentioned that $130 million worth of BTC was moved to “service wallets,” indicating a potential sale. The transfer was first noticed by blockchain strategist @Defi_Maestro on social platform X, hinting at possible market disruptions.

Background of the BKA’s Bitcoin Holdings

The BKA’s Bitcoin came from the seizure of around 50,000 BTC from the operators of Movie2k.to, a movie streaming site that was active in 2013. The suspects made a “voluntary contribution” to the BKA in mid-January 2024. The German government held this Bitcoin in a labeled wallet until the recent transfer.

Impact on Market Sentiment

The BKA’s Bitcoin transactions had a noticeable impact on market sentiment. Analysts saw an increase in short positions and a slight drop in Bitcoin’s price after the transfers. Bitcoin fell below $65,000, a common reaction to large transactions by government entities. Despite only 500 BTC being transferred to Kraken and Bitstamp, the fact that a government is liquidating assets can cause short-term market fluctuations.

Crypto analyst Ali Charts noted that Bitcoin dropped below the +0.5σ MVRV pricing band to $67,890, suggesting a correction towards the mid-price band of $54,930. This indicates that Bitcoin is being traded at a loss compared to some of its earlier acquisition prices.

BTC Derivatives Data and Market Indicators

The BKA’s activity coincided with other mixed market indicators. Bitcoin’s dominance fell by 0.93% to 54.31%, showing a shift of interest towards altcoins. There was also a slight net outflow from Bitcoin exchanges, which is seen as bullish since traders prefer to hold onto their Bitcoins rather than sell them.

The Crypto Fear & Greed Index dropped by 13.51% to 64, still within the ‘greed’ territory, indicating overall optimism despite the recent price drop. Open interest in Bitcoin futures and options increased, showing more speculation and interest from institutional investors.

Funding rates remained slightly positive, meaning traders are willing to keep long positions open despite the price decline. This behavior suggests that while the BKA’s transactions caused a short-term dip, the long-term market sentiment remains positive.


The German Federal Criminal Police Office’s transfer of $425 million in Bitcoin created short-term market turbulence, causing Bitcoin to fall below $65,000. While this move sparked concern and led to increased short positions, the long-term sentiment in the cryptocurrency market remains optimistic. Traders and analysts continue to monitor the situation closely, anticipating potential impacts on Bitcoin’s price and overall market behavior.

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