Bitcoin (BTC) price dropped to $54,800 during the article’s preparation and is now trading at $56,000. Volatility is extremely high. The main reason is Germany’s ongoing BTC sales. So, what triggered this drop in the last few hours? Here are the details.
Why Is Bitcoin Dropping?
The German government has been selling 50,000 seized BTC in parts for a long time. Continuous transfers trigger on-chain alarms, significantly affecting investors‘ risk appetite negatively. The good news is that the recent institutional sales by the BKA, affiliated with the German government, have depleted half of the total reserves.
At the time of writing, $79.9 million and $51.3 million worth of BTC were transferred on Coinbase and Bitstamp exchanges, respectively. After the recent transfers to market maker Flow Traders and exchanges, $1.35 billion worth of BTC is now ready for sale.
After the remaining BTCs are sold, the short-term intense selling pressure in the markets may weaken. However, we should see details about the slow process of MTGOX refunds.
