YEREVAN (CoinChapter.com) — A cryptocurrency wallet labeled “German Government (BKA)” has sold another $900 million worth of Bitcoin. This has sparked fears of increased selling pressure on BTC prices. On-chain data from Arkham Intelligence shows that the German government transferred about 16,309 Bitcoin in multiple transactions on July 8. This marks the largest single-day Bitcoin liquidation by the government.
Among the transactions, 3,500 BTC was sent to Flow Traders, 200 BTC to Kraken, 400 BTC to Bitstamp, and 400 BTC to Coinbase. These transfers to major exchanges like Bitstamp, Coinbase, and Kraken, along with market makers Flow Traders and Cumberland DRW, indicate significant market impact.
Bitcoin Price Plummets 6.75% After German Government’s Massive BTC Sale
Following the large transfers, Bitcoin’s price dropped sharply during the European trading session. It fell as much as 6.75% from a high of $58,200 to a low of $54,278. The last group of blockchain transactions contributed to this drop, totaling 8,700 BTC.
Arkham data shows that the German government’s holdings have now reduced to 23,788 BTC, worth $1.3 billion, from an initial 50,000 BTC since it started offloading the digital asset in June. The latest transfers suggest the German government is more than halfway through its selling spree.
BTC Price Drop Triggers $425M in Crypto Market Liquidations
The drop in Bitcoin price triggered massive liquidations across the crypto market. Data from CoinGlass reveals a total of $425 million in leveraged positions were liquidated. $216 million of which were long liquidations. Over the last 24 hours, more than $189 million in Bitcoin positions were liquidated. Of these, $81 million were long BTC positions, while $107.97 million were short BTC liquidations.
Bitcoin appears to have significant support at the $54,700 mark. However, a move below this level could liquidate approximately $750 million worth of cumulative leveraged long positions across all exchanges.
Mt. Gox Begins $9B Bitcoin and Bitcoin Cash Repayments
The repayment process for the creditors of the defunct crypto exchange Mt. Gox has begun, with repayments in Bitcoin and Bitcoin Cash. On July 5, Nobuaki Kobayashi, the trustee for the Mt. Gox bankruptcy estate, announced the start of these repayments through several designated crypto exchanges.
The balance to be repaid stands at $9 billion worth of BTC and BCH. Crypto exchange Bitstamp aims to distribute its portion of Bitcoin repayments to Mt. Gox creditors swiftly.
Additional selling pressure comes after a small amount of Bitcoin was moved out of wallets associated with Mt. Gox. Blockchain analytics firm Arkham Intelligence reported $2.71 billion being transferred from the exchange’s cold wallet.
At the time of publication, Bitcoin was trading at $57,398.
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