A significant wallet belonging to a German official entity transferred a large amount of Bitcoin (BTC) to exchanges earlier today, coinciding with the first activity in a month from Mt. Gox wallets.
Bitcoin’s Price Plunge
Bitcoin (BTC) fell below $58,000 in the European morning, marking a 5% loss over 24 hours and reaching levels not seen since early May. This sell-off was partly driven by movements in the wallets of the now-defunct crypto exchange, Mt. Gox, and a substantial transfer by the German Federal Criminal Police Office.
German Government’s BTC Transfer
The German government transferred over $75 million worth of BTC to crypto exchanges, stirring speculation in the market. Lucy Hu, a senior analyst at Metalpha, highlighted this as a key factor for the price drop.
Mt. Gox Wallet Activity
Mt. Gox is set to start distributing assets stolen in a 2014 hack this month, with repayments in bitcoin and bitcoin cash (BCH). This could increase selling pressure on both markets. According to Arkham data, Mt. Gox wallets conducted test transactions worth $25, suggesting potential larger transfers.
Market Implications
Arkham’s CEO, Miguel More, noted that the German entity moved $175 million in BTC to various wallets, with $75 million sent to exchanges like Kraken and Coinbase. Transfers to exchanges typically indicate an intent to sell, contributing to market anxiety.
Meanwhile, Bitcoin has fallen below a key technical indicator for the first time since October, suggesting a possible downtrend in the coming months.
