The German government sold a significant amount of Bitcoin on June 25th, sparking fears of a potential price drop for the cryptocurrency. A government-linked wallet labeled “German Government (BKA)” offloaded 900 Bitcoin, valued at over $54 million.
The sales occurred in three separate transactions. Two transactions of 200 BTC each were sent to major cryptocurrency exchanges Coinbase and Kraken, suggesting a potential plan to sell. However, the remaining 500 BTC were sent to an unknown wallet address, “139Po.” This raises questions about the government’s intentions for these funds.
This is not the first time the German government has interacted with “139Po.” Previous transfers of 800 and 500 BTC were made to this address in the days leading up to June 25th.
Analysts are concerned that these sales could push Bitcoin’s price below the key level of $60,000. The cryptocurrency is already experiencing a downward trend, having fallen over 11% in the past month.
The German government’s wallet still holds a substantial amount of Bitcoin, valued at over $2.8 billion. This raises the possibility of further selling in the future, potentially impacting the price further.
Adding to the potential for a price decline, the collapsed Mt. Gox exchange is set to begin repaying creditors in July. This could see a large influx of Bitcoin sold by users who have been waiting over a decade to recover their funds.
