On Monday, German authorities stepped up their selling of Bitcoin, causing prices to rise significantly. price volatility for the largest cryptocurrency by market capitalization on the market, Bitcoin (BTC).
After a brief spike above $58,000 over the weekend, BTC has seen a retracement of over 2% in the past few hours as German authorities continue to add to the ongoing selling pressure on the BTC market.
German authorities increase Bitcoin sales activity
According to data from blockchain analytics platform Arkham, German authorities have initiated several transfers to exchanges and market makers, marking a substantial increase in their sales activity.
On-chain data from the German authorities’ wallet shows that the first transaction involved over 2,730 BTC, equivalent to $155 million, followed by an additional amount transfer of 8,100 BTC worth over $463 million.
The authorities continued their relentless sell-off by sending 5,200 additional BTC German authorities sold over 16,000 BTC in a single day, worth $297 million. These cumulative transactions made it the largest sales day for German authorities, with over 16,000 BTC sold on Monday alone.
Arkham data Also shows that continued selling pressure from German authorities has reduced their holdings to 23,787.7 BTC, valued at around $1.32 billion, representing less than half of the BTC initially seized in January 2024.
Ki Young Ju, founder and CEO of market data analytics firm CryptoQuant, suggests that the impact of government BTC sales may be “overestimated.” According to Ju, the BTC seized by the government represents about $9 billion in the realized cap, or only 4% of the total cumulative value realized since 2023, suggesting little long-term impact on the BTC market.
Ju further explained that despite $224 billion worth of Bitcoin being sold since 2023, the price of the cryptocurrency has increased by 350%, indicating that it is “manageable.” Seller-side liquidity for BTC investors.
Bitcoin Makes Remarkable Comeback With $400 Million Inflows
Following the increased selling activity by German authorities and the resulting volatility in the cryptocurrency market, BTC investment products have seen a positive turnaround.
After three weeks, products linked to the world’s largest cryptocurrency have lost more than $1.2 billion, and digital asset investment products have seen a notable turnaround, according to a report released Monday. report from asset manager CoinShares.
According to the data, Bitcoin digital funds led the way with around $400 million in inflows. This positive increase in investments comes as the price of Bitcoin briefly dropped to $54,000, marking its lowest level since February.
Among Bitcoin funds, Fidelity and ProShares have emerged as the main contenders, attracting entries of $200 million and $100 million respectively. However, Grayscale’s fund remained in the red, recording a loss of around $90 million.
Despite this setback, the report suggests that the overall market trend of positive inflows suggests growing interest in digital asset investment products following the dramatic price declines recorded.
At the time of writing, BTC has regained the $56,200 level. Still, the market’s largest cryptocurrency is down 11% and 7% over the seven- and fourteen-day periods, respectively.
Featured image of DALL-E, chart from TradingView.com
