According to Arkham Intelligence data, wallets linked to the German government still have approximately 23,788 bitcoins, indicating that it has already sold more than half of its seized assets.
Market Reaction to Massive Bitcoin Sale
Bitcoin (BTC) plummeted in Europe on Monday afternoon after the German government shifted more than $900 million in assets from its Bitcoin holdings, blockchain statistics reveal.
Arkham Intelligence: Tracking Government Bitcoin Transfers
According to blockchain data platform Arkham Intelligence, Bitcoin wallets labeled as belonging to the German government transferred a total of approximately 16,309 BTC in several batches to external addresses, including crypto exchanges Bitstamp, Kraken, and Coinbase, as well as market makers Flow Traders and Cumberland DRW.
Immediate Price Impact of BTC Sales
Bitcoin’s price fell 3% to $55,000 immediately after the final batch of blockchain transactions totaling 8,700 BTC. Later, it recovered to little beyond $56,000 but was still down 1.2% over the previous 24 hours.
Ongoing Market Concerns and Predictions
The price movement followed last week’s drop to the lowest level since February. Market observers predicted a significant supply overhang over the generally quiet and low-volume summer season, with the German and US governments reportedly selling seized assets just as the insolvent cryptocurrency exchange Mt. Gox begins to issue reimbursements.
Progress of German Government’s Bitcoin Liquidation
The German government is already more than halfway through its selling frenzy, with holdings down to 23,788 BTC worth $1.3 billion from 50,000 BTC when it began unloading tokens last month, according to Arkham statistics.
