In a surprising move, the German government has sold 900 Bitcoin worth over $54 million, triggering concerns about a potential market crash. The transactions were conducted in three separate batches on June 25.
The first two transactions saw 200 BTC each sent to major exchanges Coinbase and Kraken. The third, a substantial 500 BTC, valued at over $30 million, was transferred to an unknown wallet labeled “139Po,” as reported by Arkham Intelligence. This mysterious wallet has previously interacted with the government, receiving 800 BTC on June 20 and 500 BTC on June 19.
Despite these sales, the government still holds 46,359 Bitcoin, valued at approximately $2.8 billion, raising fears that more sales could push Bitcoin prices below the critical $60,000 mark. Bitcoin is currently trading just above $61,000, having dropped 11% this month and 7% this week.
Analyst Willy Woo predicts a potential price correction lasting up to four weeks before a recovery, as shared in his recent social media update. This forecast comes amid increasing market tension fueled by significant Bitcoin movements.
The first signs of the German government’s sell-off appeared on June 19, with a massive 6,500 BTC transfer worth over $425 million. Most of these Bitcoins have been moved to centralized exchanges, indicating a likelihood of further sales.
Adding to the pressure, the defunct Mt. Gox exchange is set to repay its creditors in July, releasing over $9.4 billion worth of Bitcoin into the market. With 127,000 creditors awaiting their funds for over a decade, this influx could further depress Bitcoin prices.
The ongoing sales by the German government and the upcoming Mt. Gox repayments have the market on high alert, fearing substantial downward pressure on Bitcoin’s price in the coming weeks.
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