German Govt. Moves 1000 Bitcoin Worth $55 Million: Another Slump?

Paigambar Mohan Raj
Source: CoinMarketCap

According to the data from cryptocurrency analysis firm LookOnChain, the German government has transferred 1000 Bitcoin (BTC) worth nearly $56 million. Of the 1000 coins, 500, worth about $28 million, were deposited to crypto exchanges Coinbase and Bitstamp.

Also Read: Bitcoin [BTC] Dips To $54K Amid Low Social Activity

The German government has been under the spotlight over the last few weeks for its continuous transfer of BTC from its wallet. The German government’s BTC sales and Mt. Gox reimbursing clients have shaken up the cryptocurrency market. BTC’s price fell to under $55,000 earlier today but has since recovered the $57,000 mark.

According to Arkham Intelligence, the German government still holds 29,286 BTC worth $2.2 billion. It is unclear why the nation is selling its Bitcoin holdings. Earlier this year, the German Federal Criminal Police Office (BKA) confiscated over 49,857 BTC from the piracy website. The government may be liquidating some of the coins from the raid in order to increase its cash reserves.

Will Bitcoin undergo another correction?

Source – SkyNews

It is yet unclear whether the German government will continue selling its BTC reserves or not. If they sell all of their holdings, the cryptocurrency market may face a significant price correction. So far, the German govt. has sold just a fraction of its holdings.

The movement of coins from the nation’s coffers into exchanges has spooked investors. Investor sentiment has shifted into the “fear” territory.

Also Read: Bitcoin Could Replace The US Dollar In 15 Years, Jack Dorsey Predicts

Miners had also begun selling their holdings after the average cost of mining one Bitcoin breached the $86,000 level. Analyst Ali Martinez claims that the price of Bitcoin has always outpaced the cost of mining. There is a chance that the price of bitcoin will reach a new all-time high of more than $86,000.