Bitcoin’s price plunged to $53,000 after the German government sold nearly 4,900 BTC, igniting widespread panic in the crypto market.

Massive BTC Transfers by German Govt

Crypto exchanges Coinbase, Bitstamp, Kraken, and crypto market makers Cumberland DRW and Flow Traders receive Bitcoin from the German government.

The Bitcoin selling spree for today reached over 4,837 BTC as a result of this. One reason Bitcoin's price fell to $53,000—and more drops will keep the crypto market panicked—was selling by the German government.

On July 8, the German government sent 133.723 BTC, or approximately $7.63 million, to Cumberland DRW, a crypto market maker, according to Arkham, an on-chain data platform. Two transfers were made to Cumberland by the German government. The first one was 0.001, which was probably only a test transfer before future large transfers.

Immediate Market Reaction

Coingape reports that over 4,837 BTC has been dumped and transferred from the German government-affiliated wallet (BKA) to several cryptocurrency exchanges, including Coinbase, Bitstamp, Kraken, and other addresses beginning with 139PoP and bc1qu3.

An estimated $2.03 billion worth of 35,488 BTC remain in the possession of the government. A panic selloff among investors was set off by these dumps by the wallet address, leading to a negative attitude. There will likely be more selloffs to Cumberland DRW in the next few days, and the most recent transfer is only one more example of that tendency.

Moving 6.37K BTC worth about $494.45 million (from $2.81 to $2.32 billion) has been done by the German government since July 1.

Ongoing Selloff Concerns

After hitting a 24-hour low of 54,321 BTC, the price rose 5%. But as the German government delivered Bitcoin to cryptocurrency market makers and exchanges, the price fell. The price of Bitcoin has reached an intraday high of 58,178 and is now trading at $56,972.

Traders seem to be more interested in the market as the volume of transactions has jumped 58% in the past day. Sellers will defend the $58Kk-$60k range, therefore traders should keep an eye on it.