Government Bitcoin Sales Will Increase Selling Pressure
Government Bitcoin sales have added to the selling pressure affecting Bitcoin this month. In addition to governments, Bitcoin miners and whales are also dumping coins into the market, increasing supply as demand declines.
Besides the US, the German government recently sold $2.76 billion worth of Bitcoin. The most recent transaction occurred on June 26, when a German Bitcoin wallet sent $24 million worth of BTC to Coinbase and Kraken. The German government owns $2 billion worth of Bitcoin, according to Arcam Intelligence.
Eleven governments around the world currently own Bitcoin. These wallet addresses account for 2.7% of the total Bitcoin supply.
Beyond governments, there are concerns about the selling pressure created by Mt.Gox. As previously reported, the crypto market was in a panic after the news that the Mt.Gox recovery manager was ready to throw 140,000 bitcoins onto the market.
Bitcoin’s price is down 1.5% over the past 24 hours, trading at $60,732 at 03:45 am EST.
According to CryptoQuant’s Ki Young Lee, recent government sales are unlikely to impact Bitcoin’s price. He noted that liquidity on the sell side of Coinbase Prime is higher in bull markets than in bear markets.