Bitrabo Editorial
German authorities made a significant impact on Bitcoin’s market value by selling off a large amount of the cryptocurrency in a single day.
Bitcoin’s price had a slight increase above $58,000 before dropping by over 2% as German authorities continued to put selling pressure on the market.
Increased Selling Activity by German Authorities
Data from blockchain analytics platform Arkham revealed that German authorities conducted numerous transfers to exchanges and market makers, significantly increasing their selling activity.
The authorities sold over 16,000 Bitcoins worth millions of dollars on Monday alone, representing the largest selling day for them.
Arkham data also shows that the German authorities reduced their Bitcoin holdings to around 23,787.7 BTC, valued at approximately $1.32 billion, less than half of what was originally seized in January 2024.
Ki Young Ju, founder of CryptoQuant, mentioned that despite significant government BTC sales, their impact on the overall Bitcoin market may be overestimated as it only represents a small percentage of the total realized BTC value since 2023.
Bitcoin Makes a Notable Recovery
Following the intense selling activity by German authorities, Bitcoin investment products experienced a positive turnaround after three weeks of losses.
Bitcoin digital funds saw inflows of around $400 million, signaling growing interest in digital asset investment products despite temporary market fluctuations.
Bitcoin’s price briefly dipped to $54,000 but has since recovered to around $56,200. However, it is still down by 11% and 7% in the seven-day and fourteen-day time frames.
Image sources: DALL-E (featured image), TradingView.com (chart)