Bitcoin Prices Affected by German Government’s $397 Million Sales

Bitcoin (BTC) has recently plummeted to a four-month low, shedding over 25% from its peak of $73,135 on March 13, triggering a significant downturn across the cryptocurrency market.

Currently, BTC is trading at $55,291, marking a 3.06% decline in the past 24 hours and adding to a weekly loss of 10.11%.

Since hitting its high of $1.4 trillion on March 13, Bitcoin’s market capitalization has contracted by $350 billion.

This downward trajectory has been exacerbated by substantial sell-offs and the ongoing reimbursement process by bankrupt exchange Mt. Gox, which is distributing nearly $9 billion in Bitcoin owed to creditors.

Moreover, the German government has initiated a series of Bitcoin sales, liquidating a significant portion of its holdings acquired in 2013 from the Movie2K website operator seizure. The recent transactions have totaled 6,625 BTC, yielding profits of $397 million over ten days.

While initially causing market concerns, the narrative around Germany’s Bitcoin sales may not accurately reflect market impacts, as observed by developer Samson Mow, suggesting a nuanced evaluation of the situation.