Bitcoin price dropped below $56,000 again as the German government continued to sell off its BTC holdings. On Monday, more than 16,000 BTC were sent to crypto exchanges in what was the largest transfer in a single day from the government-controlled wallet.
The selling spree intensified with transfers of 2,700 BTC, 5,200 BTC, and 8,100 BTC occurring in quick succession over a two-hour period. This marked a significant increase in selling activity by the German government.
The Arkham team reported, “The German Government sent another 5200 BTC ($297.3M) to Kraken, Bitstamp, Coinbase, and 139Po right after we posted this tweet. That makes this the biggest day for them so far – over 16,000 BTC in total.”
As a result of the selling pressure, Bitcoin’s price reacted by dropping from intraday highs of $57,877 to around $55,130. Germany had seized 50,000 bitcoin from Movie2k earlier this year, and in recent days, it has been rapidly reducing its holdings, which now stand at 23,787 BTC.
The total value of the BTC holdings has decreased from over $3.6 billion when Bitcoin was at its all-time high in March to $1.34 billion with the current BTC price hovering around $55.8k. This represents a significant decline in the value of the government’s BTC holdings.
Over the past week, Bitcoin price has declined by more than 10%, reflecting the impact of the ongoing sell-off by the German government. The market continues to monitor the situation closely as the selling activity shows no signs of slowing down.
The German government’s decision to sell off a large portion of its BTC holdings has raised questions about the potential impact on the overall market. Investors are watching closely to see how this selling pressure will affect Bitcoin’s price in the short and long term.
As the selling spree continues, it remains to be seen how Bitcoin will react and whether it can regain its momentum in the face of increased selling activity by the German government. The market is bracing for further volatility as the situation unfolds.