The German government has sold a significant amount of bitcoins again. According to Arkham Intelligence, the government sold 900 BTC in three separate transactions. After these transactions, the German wallet still holds 46,359 bitcoins.
German government wallet sells 900 BTC
The first transaction involved 200 BTC, which was sent to the Coinbase exchange. The second transaction also involved 200 BTC, but it was sent to the Kraken exchange. The third transaction was more interesting, as 500 BTC was sent to an unknown wallet starting with the address “139Po”.
Although the wallet remains unknown, the German government has sent bitcoins to this address before. For example, they sent 800 BTC on June 20 and 500 BTC on June 19.
Bitcoin has been falling in price for some time now
The question remains what the impact of these bitcoins on the market will be. If the German government decides to sell all of its remaining bitcoins, it could put significant selling pressure on the market. Additionally, the sudden availability of these bitcoins could cause the price to decrease. The wallet now holds approximately $2.8 billion in bitcoins.
Bitcoin has been struggling for some time, with a 11% price drop in the past month and a 7% drop in the past week. A well-known crypto trader, Willy Woo, believes the correction will last four weeks before the price rises again.
On X, he wrote to his followers:
“Looking at this model… probably a further cooldown of 1-4 weeks until the bitcoin price reaches a bottom.”
Selling pressure due to other factors
Any selling pressure could also be triggered by other factors. The former crypto exchange Mt. Gox has announced that it will begin reimbursing victims of its bankruptcy.
Nearly $9.4 billion worth of bitcoin must be distributed among a total of around 127,000 creditors. It took the trading platform 10 years to retrieve their bitcoins. If these coins become available on the exchanges at the same time, this could have a major effect on the market price.