German Government Introduces 55 Million Worth of 1000 Bitcoins Another Plummet Ahead

CoinDesk report:
According to data from cryptocurrency analysis firm LookOnChain, the German government has transferred 1,000 bitcoins worth nearly $56 million. Out of these 1,000 coins, 500 worth approximately $28 million are held in cryptocurrency exchanges Coinbase and Bitstamp.
Read also: Bitcoin [BTC] Falls to $5,400 Amidst Low Social Activity
Over the past few weeks, the German government has attracted attention for its continuous transfer of BTC from its wallet. The German government’s BTC sales and the repayment of Mt. Gox customers have shaken the cryptocurrency market. The price of BTC fell below $55,000 earlier today but has since recovered the $57,000 mark.
According to data from Arkham Intelligence, the German government still holds 29,286 BTC worth $2.2 billion. It is currently unclear why the country is selling its bitcoin holdings. Earlier this year, the German Federal Criminal Police Office (BKA) seized over 49,857 BTC from the piracy website Movie2k.to. The government may be clearing some coins from the raid to increase its cash reserves.
Will Bitcoin Adjust Again?
Source – SkyNews
It is currently unclear whether the German government will continue selling its BTC reserves. If they were to sell all their holdings, the cryptocurrency market could face a significant price adjustment. So far, the German government has only sold a small portion of its holdings.
The transfer of coins from the treasury to exchanges has spooked investors. Investor sentiment has shifted towards the “fear” territory.
Read also: Jack Dorsey Predicts Bitcoin Could Replace the Dollar Within 15 Years
Miners have also started selling their holdings of bitcoin after the average cost of mining one bitcoin surpassed $86,000. Analyst Ali Martinez claims that the price of bitcoin has consistently remained above the mining cost. The price of bitcoin could potentially reach new all-time highs above $86,000.