Bitcoin's price experienced a significant drop on Monday as the German government sold more than $900 million worth of its Bitcoin holdings, according to blockchain data.
Data from Arkham Intelligence reveals that Germany's wallets, holding seized assets, transferred 16,309 Bitcoin to crypto exchanges and market makers on Monday.
Bitcoin's price fell to a low of $55,000 before recovering slightly.
On Monday afternoon in Europe, Bitcoin's value declined as blockchain data showed the German government offloading a substantial portion of its Bitcoin holdings. Wallets identified by Arkham Intelligence as belonging to the German government moved approximately 16,309 BTC to external addresses, including crypto exchanges Bitstamp, Kraken, Coinbase, and market makers Flow Traders and Cumberland DRW.
The price of Bitcoin dropped 3% to $55,000 following the final batch of transactions totaling 8,700 BTC. It later rebounded to just above $56,000, marking a 1.2% decrease over the past 24 hours.
Blockchain data of the German government's BTC holdings (Arkham Intelligence)
This price action follows last week's decline to the lowest levels since February. Market analysts attribute the drop to an influx of supply during the typically low-volume summer period, as both the German and U.S. governments sell seized assets. Additionally, the defunct crypto exchange Mt. Gox has begun issuing repayments, contributing to the market pressure.
With these recent transactions, the German government has sold more than half of its seized Bitcoin holdings. Its balance has decreased from 50,000 BTC to 23,788 BTC, now worth $1.3 billion, as reported by Arkham Intelligence.
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