Will Germanys 900 Bitcoin trash can bring Bitcoin below 60000

CoinDesk reports:
The German government has resumed the liquidation of its seized Bitcoin assets, sparking concerns about further price declines in the cryptocurrency market.
Recently, a cryptocurrency wallet named “German government (BKA)” transferred 400 bitcoins worth about $25 million to cryptocurrency exchanges Coinbase (NASDAQ: COIN) and Kraken. In addition, according to Arkham Intelligence, 500 BTC worth over $30 million was transferred to an unknown address, a wallet labeled “139Po.”
It is worth noting that this is not the first interaction between the German government and the “139Po” wallet. Previous transactions included 800 BTC sent on June 20 and 500 BTC sent on June 19.
Despite these sales, the wallet still holds 46,359 bitcoins worth about $2.8 billion.
These bitcoin assets were originally seized from the movie piracy website Movie2k.to in January 2020, marking the largest bitcoin seizure by German law enforcement.
Last week, the government sold about $325 million worth of bitcoin, indicating a significant step in liquidating its holdings and the possibility of further sales.
Massive sell pressure could push bitcoin below $60,000
The government-marked wallet holding over $2.8 billion worth of bitcoin could bring massive sell pressure that might push the price of bitcoin below the key psychological level of $60,000.
Furthermore, the recent sales coincide with a bearish trend in the cryptocurrency market. The timing of the sales, coupled with other market pressures such as large outflows from bitcoin exchange-traded funds (ETFs), has exacerbated the price decline.
Bitcoin 7-day price chart. Source: Finbold
Currently, bitcoin is trading at $61,391, with a slight 0.06% increase in the past 24 hours and a 10% cumulative loss on its monthly chart.
Looking ahead, additional selling pressure may emerge in July as the now-defunct cryptocurrency exchange Mt. Gox plans to repay creditors. With bitcoin worth over $9.4 billion owed to approximately 127,000 creditors, the market may face further downward pressure. The possibility of bitcoin flooding the market adds another layer of uncertainty.
Furthermore, cryptocurrency market volatility intensified, with liquidations exceeding $300 million on Monday.
Bitcoin accounted for about half of these liquidations, approximately $150 million, while Ethereum (ETH) liquidations amounted to $66 million. The recent market volatility primarily affected long positions, leading to forced liquidations and further price pressure.
Despite the recent declines, the 46,359 BTC currently held by the German government, worth $2.8 billion, continue to pose significant risks for further market volatility. As the situation unfolds, investors will closely monitor the government’s actions and the broader market’s response to these massive bitcoin liquidations.
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