Bitcoin the primary crypto asset dropped by 3.5% on Friday morning to $64,700 as volatility shook the asset following a humungous sell-off of Bitcoin assets by the German government.
Bitcoin in the last hour has dropped by nearly 1.2% continuing an underwhelming trend that has witnessed the asset drop by over 9% in the last two weeks.
Industry experts believe the drop in Bitcoin prices was triggered by the massive sell-off of seized Bitcoin assets by the German authorities.
German authorities resumed selling off massive portions of Bitcoin assets from a large cache of Bitcoin seized from Movie2k.to a large movie piracy website.
The cache of Bitcoin seized from the movie piracy site owners is valued at around $3 billion and was seized in 2020.
German authorities seized over 50,000 BTC from the piracy website back in 2020 and described the bust as the most extensive security of Bitcoins by law enforcement authorities in the Federal Republic of Germany to date.
German authorities have sold off about $325 million worth of Bitcoin from the seized stash in just two days. There is also a huge possibility of further sales of the Bitcoin asset by the German authorities explained Blockchain Analytics firm Arkham.
Arkham took to X to share their observation reeling out specific figures to back it up.
“UPDATE: German Government Still Selling BTC > $195M So Far. In the past 2 hours, the German Government sent $65M in BTC to 2 likely exchange deposits including Coinbase. The German Government moved $600M BTC yesterday, sending $130M BTC to 4 likely exchange deposits including Kraken and Bitstamp. Right now, they still hold $3.05B in BTC”. Arkham Tweeted
Bitcoin spiked in March to an all-time high of $73,797 before pulling back. But then it slumped to $56,527 in May before recovering.
The recent decline of Bitcoin is not solely due to the German sell-off. The bearish trend in the market came at a time when major indices such as the S&P 500 also slumped following wider negative signals in the general financial market.
What to know
- Bitcoin is the primary crypto asset and often whenever it dips in price it also affects other assets in the market. This Is a recurring trend that has become a well-known pattern in the crypto market.
- The German authorities here serve as Crypto whales as their activities are significant enough to affect the market price of crypto assets. Crypto whales are large holders of a cryptocurrency asset whose trading activities are significant enough to affect the price of crypto assets in the market.
