German authorities sold 10,567 BTC worth $600 million today, significantly impacting Bitcoin’s price, already down 18% this month from sell-offs by Mt. Gox and Genesis Trading.
As of 1:00 p.m. EST, Thursday, July 11, the wallets linked to German authorities hold a remaining 4,925 BTC, currently valued at $285 million. This marks over a 90% decrease in BTC held, down from 50,000 BTC worth nearly $3 billion when they began selling three weeks ago. BTC has corrected roughly 18% since Germany began their Bitcoin liquidation.
German authorities’ Bitcoin wallets transferred 10,567 BTC worth over $600 million today to exchanges like Bitstamp, Coinbase, and Kraken, and other service providers, according to blockchain data from Arkham Intelligence.
Tron founder Justin Sun recently proposed to buy the country’s Bitcoin to minimize market damage.
Sell-off Fears
Even though Germany appears to be nearing the end of its sell-off, other entities still need to sell their BTC.
Mt. Gox, which was one of the largest Bitcoin exchanges until it collapsed in 2014, began repaying its creditors after a decade-long process. This payout involves over 140,000 BTC, 143,000 Bitcoin Cash, and 69 billion Japanese yen, totaling approximately $9 billion.
Many analysts were concerned that the unexpected increase in the supply of BTC in the market would lead to significant downward pressure on prices. They feared that many creditors would sell off their holdings to lock in profits.
Adding to the pressure, Genesis Trading has also been actively selling BTC over the last month. Genesis has been liquidating assets, contributing to the increased selling pressure on the market.
These combined activities from Mt. Gox and Genesis Trading — coupled with German selling — have exacerbated Bitcoin’s recent price decline, which has already seen an 18% drop in the past month.
