The price of Bitcoin (BTC) experienced a decline to $54,800 during the article's compilation and is currently trading at $56,000, showcasing significant volatility. This fluctuation is primarily attributed to the continuous BTC sales by Germany. The recent drop in value was prompted by these ongoing sales. Let's delve into the reasons behind Bitcoin's recent decrease in value.
Factors Contributing to Bitcoin's Decline
The German government has been gradually liquidating 50,000 confiscated BTC over an extended period. These incremental sell-offs have led to regular on-chain alerts, impacting investors' risk tolerance negatively. However, it is worth noting that the recent institutional sales conducted by BKA, a German government entity, have already exhausted half of the total BTC reserves.
As of the latest update, transactions amounting to $79.9 million and $51.3 million in BTC were observed on Coinbase and Bitstamp exchanges, respectively. Following the transfers to both market maker Flow Traders and various exchanges, a substantial $1.35 billion worth of BTC is now available for purchase.
After the remaining BTC inventory is completely sold off, the intense selling pressure currently prevalent in the markets is expected to subside. It is crucial to keep an eye on the developments concerning the gradual MTGOX refunds.
IMAGE: Germany's BTC Sales
This article originally appeared on COINTURK NEWS: 'Germany’s BTC Sales Impact Bitcoin Price'.
