Bitcoin (BTC) experienced a drop on Monday afternoon as blockchain data revealed the movement of $500 million in assets by the German government. The data from Arkham Intelligence showed that a Bitcoin address associated with the German government transferred 8,700 BTC to various crypto exchanges, including Bitstamp, Kraken, and Coinbase, as well as market maker Flow Traders.
The price of Bitcoin fell by 3% to $55,000 following the blockchain transactions but later recovered slightly to above $56,000, still showing a 1.2% decrease over the past 24 hours. This decline came after a previous slide last week, which had brought the price to its lowest point since February.
Market analysts noted a significant supply entering the market during the quieter summer season, with both the German and U.S. governments seemingly selling seized assets. Additionally, the ongoing repayments by the defunct crypto exchange Mt. Gox added to the pressure on the market.
The German authorities have been gradually reducing their Bitcoin holdings, with the latest transfer bringing their total to 23,788 BTC, valued at $1.3 billion. This marks a decrease from the initial 50,000 BTC that they held, demonstrating their significant movement in the cryptocurrency market over the past month.
Overall, the recent activity involving government asset movements and the impact on Bitcoin’s price highlight the increasing influence of institutional players and regulatory bodies in the cryptocurrency space, shaping market dynamics and investor sentiment.