Bitcoin Price Drop Amid German Government’s Asset Transfer

Bitcoin Movement and Price Drop

Bitcoin (BTC) witnessed a decline on Monday afternoon in Europe as the German government initiated the transfer of another $500 million worth of assets, as indicated by blockchain data. An address linked to the German government was identified by blockchain data platform Arkham Intelligence for moving 8,700 BTC to an intermediary wallet. Following this, the assets were transferred to prominent crypto exchanges including Bitstamp, Kraken, Coinbase, and market maker Flow Traders.

The price of Bitcoin experienced a 3% drop, reaching as low as $55,000 shortly after the blockchain transactions. Subsequently, there was a rebound with the price rising slightly above $56,000, yet still reflecting a 1.2% decrease over the past 24 hours.

This price movement occurred following a slide last week to the lowest price since February. Analysts highlighted a significant supply overhang entering the market during the relatively calm and low-volume summer season. Notably, the German and U.S. governments were reported to be selling seized assets at the same time as the defunct crypto exchange Mt. Gox began issuing repayments.

With the recent transfers, the holdings of the German authorities have now decreased to 23,788 BTC valued at $1.3 billion from an initial 50,000 BTC, as per data from Arkham.