The German government has sold a significant amount of Bitcoin, raising concerns about its impact on the cryptocurrency’s price. A government-linked wallet labeled “German Government (BKA)” sold 900 Bitcoin on June 25, valued at over $54 million.
The transactions included 200 BTC each sent to major cryptocurrency exchanges Coinbase and Kraken, while the remaining 500 BTC went to an unknown wallet address “139Po.” This is not the first interaction between the German government and this address, with previous transfers of 800 and 500 BTC occurring in the days leading up to June 25.
Analysts fear this selling pressure could push Bitcoin’s price below the key psychological level of $60,000. The cryptocurrency is already experiencing a downtrend, falling over 11% in the past month.
The German government’s wallet still holds a substantial amount of Bitcoin, valued at over $2.8 billion. This raises the possibility of further selling in the future, potentially impacting the price.
Adding to the potential for a price drop, the collapsed Mt. Gox exchange is set to begin repaying creditors in July. This could see a large influx of Bitcoin sold by users who have been waiting over a decade to recover their funds.
The reason behind the German government’s Bitcoin sales remains unclear. The funds were reportedly seized from a pirated movie website operator.
