Germany has recently divested 282.74 BTC, valued at over $16 million presently, following prior sales that impacted Bitcoin’s market price. The cryptocurrency is now nearing $55,000 after these transactions, alongside the first movement in a month of BTC held by the defunct exchange Mt. Gox.
Since the beginning of the month, Bitcoin has declined by nearly 10%, influenced by ongoing sales from the German government. Additionally, the movement of BTC from the defunct Mt. Gox exchange has unsettled traders.
As of now, Bitcoin is trading at $57,450, marking a 4.78% decrease in the last day amidst a broader market correction that has led to a 4% dip in the overall market capitalization. Other major cryptocurrencies such as Ethereum and Cardano’s ADA have experienced larger declines of around 6%, while BNB, Dogecoin, Shiba Inu, Toncoin, and Litecoin saw losses exceeding 7%.
Bitcoin’s price trajectory has been downward since July 1, when it reached a weekly peak of $63,663. Since then, it has depreciated by approximately 9.7%, briefly dropping below $57,000 earlier today for the first time since the beginning of the bull run in February this year.
The recent actions of the German government have significantly contributed to this downturn. Over the past two weeks, Germany has moved more than 3,000 BTC to centralized exchanges like Coinbase, Kraken, and Bitstamp. Today alone, the government transferred 1,300 BTC worth $75 million to these exchanges, as reported by blockchain analytics firm PeckShield.
In addition, another 1,700 BTC valued at $97 million was transferred to a different unknown wallet address. Lucy Hu, a senior analyst at Metalpha crypto investment firm, emphasized the substantial impact of these transfers on the market, citing them as a primary reason for the price decline.
In response to the situation, TRON founder and HTX exchange owner Justin Sun has proposed to purchase Germany’s entire $2.3 billion Bitcoin reserve to mitigate its impact on the market.
Meanwhile, the German Federal Criminal Police Office (BKA) indicated that it will likely continue selling the seized BTC, originally confiscated from a pirate movie site, for euros upon conclusion of related cases. A government spokesperson clarified that digital assets are not retained, but rather liquidated as part of official procedures.
The combined effect of German sales and the impending distribution of funds by Mt. Gox creditors, scheduled for this month in BTC and Bitcoin Cash, is expected to further weigh on Bitcoin’s price recovery prospects.
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