The German government will transfer another $900M in Bitcoin, adding to the BTC selling pressure

A cryptocurrency wallet marked “German Government (BKA)” has sold another $900 million worth of Bitcoin, raising concerns that the related selling pressure will lower the price of BTC.

According to data from Arkham Intelligence, a wallet linked to the German government transferred a total of 16,309 Bitcoin (BTC) to various foreign addresses on July 8 in multiple transactions. Some of the transfers were to crypto exchanges Bitstamp, Coinbase and Kraken and market makers Flow Traders and Cumberland DRW.

In one of the largest transactions, 3,500 BTC were sent to Flow Traders, 200 BTC to Kraken, 400 BTC to Bitstamp, and 400 BTC to Coinbase.

Another 700 BTC, worth more than 38.5 million dollars, was sent to the wallet “139Po”, which is unknown but previously received money from the German government, 550 BTC on July 2, 500 BTC on June 25 and 800 BTC on June 20.

Following these transfers, the price of Bitcoin fell sharply during the European trading session, from a high of $58,200 to a low of $54,278.

With recent transfers, the German government is more than halfway through its sales period. According to Arkham's data, since it started to sell the digital asset in June, its holdings have decreased to 23,788 BTC, $1.3 billion, from 50,000 BTC.

This drop in the price of Bitcoin has created a huge amount of liquidity in the crypto market. According to the data from CoinGlass, a total of 425 million dollars of leveraged positions were dumped in the crypto market – 216 million dollars of them were long liquidity.

More than $189 million in Bitcoin positions were liquidated in the last 24 hours, of which $87 million was liquidated in the last 12 hours alone. Of these, $81 million were long BTC positions compared to $107.97 million short BTC liquidity.

Bitcoin seems to have found significant support at the $54,700 mark. However, a move below that would eliminate roughly $750 million worth of leveraged long positions across all exchanges, Coinglass data shows.

Related: Bitcoin Weakness Prompts $441M Digital Asset Inflow

The Mt. Gox fees may introduce additional Bitcoin selling pressure.

The discontinued crypto exchange Mt. Gox creditors, the long-awaited payment process has begun, with Bitcoin and Bitcoin Cash (BCH) payments being refunded.

On July 5, Nobuaki Kobayashi, of Mt. Gox bankruptcy estate trustee, said in a statement that it has begun paying some creditors in Bitcoin and Bitcoin Cash to several named crypto exchanges.

The balance paid in BTC and BCH is worth a significant 9 billion dollars, as well as additional funds held by the administrator.

Adding to the bitcoin selling pressure is news that crypto exchange Bitstamp is aiming to quickly distribute a portion of its bitcoin payout to Matt Gox's creditors, despite it being up to two months away from receiving the coins.

This comes after a small amount of Bitcoin was withdrawn from wallets linked to Mount Gox, according to blockchain analytics firm Arkham Intelligence, with $2.71 billion transferred from the cold wallet and believed to be ready for payment.

Market participants still expect Bitcoin prices to rise again, from Mt. Gox payments are expected to continue the bull market as soon as expected selling pressure and German government sales cool down.

At the time of publication, Bitcoin was trading at $56,433, down 1.52% in the last 24 hours.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.