German Government The German Government moves 1000 bitcoin worth $55 million: another slump?

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

In the past few weeks, the German government’s continuous transfers of BTC out of its wallet has brought it to the forefront. German BTC purchases and the Mt. Gox’s reimbursement of clients has shaken the crypto market. BTC fell below $55,000 today, but it has recovered to $57,000.

Arkham Intelligence reports that the German government holds 29 286 BTC, worth $2.2 Billion. The nation’s Bitcoin holdings are being sold for an unknown reason. The German Federal Criminal Police Office confiscated 49,857 BTC earlier this year from Movie2k.to, a piracy site. Some of the coins may have been liquidated by the government to boost its reserves.

Bitcoin to undergo another correction

Yet, it is unclear if the German government intends to continue selling BTC. The cryptocurrency market could face significant price fluctuations if they sold all their BTC holdings. German government officials have sold only a small fraction of their holdings. The German government has only sold a small fraction of the assets it owns.

Investors are spooked by the movement of coin from national coffers to exchanges. Investors have shifted their sentiment into the “fear” territory.

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

After the cost to mine one Bitcoin surpassed $86,000, miners also began selling their Bitcoins. Ali Martinez, an analyst at the University of California Berkeley claims that Bitcoin’s price has always been higher than the mining cost. It is possible that bitcoin’s price will hit a record high.