German Government Bitcoin Sales Could Push Price Below $60,000 Amid Mt. Gox Repayments

German Government Bitcoin Sales Could Push Price Below $60,000 Amid Mt. Gox Repayments

The added selling pressure from the German government could potentially push Bitcoin’s price below the critical $60,000 threshold.

A cryptocurrency wallet labeled as “German Government (BKA)” has reportedly sold over $54 million worth of Bitcoin. On June 25, this wallet executed three separate transactions, offloading 900 BTC.

The first transaction, involving 200 BTC, was sent to the Coinbase exchange, followed by a second 200 BTC transfer to the Kraken exchange. However, the third and largest transaction, worth 500 BTC (over $30 million), was sent to an unknown wallet labeled “139Po,” as reported by on-chain intelligence provider Arkham Intelligence.

While the “139Po” wallet remains unidentified, it is not the first time the German government has interacted with it. Previously, 800 BTC were transferred to this address on June 20, and another 500 BTC on June 19.

Following today’s transactions, the wallet still holds 46,359 Bitcoin, according to Arkham Intelligence.

Could the German government drive Bitcoin below $60k?

The government-labeled wallet, which holds over $2.8 billion worth of BTC, has the potential to exert significant selling pressure, possibly driving Bitcoin’s price below the crucial $60,000 psychological level.

Bitcoin’s price has been on a downtrend, declining 11% over the past month and more than 7% over the past week, trading just above $61,000 as of 9:40 a.m. UTC, according to Bitstamp data.

Popular analyst Willy Woo suggested that technical chart patterns indicate Bitcoin might undergo a correction lasting up to four weeks before resuming its price rally. In a June 22 post on X to his over 1.1 million followers, Woo wrote:

“Eyeballing this model… probably 1-4 weeks more of cooling down before #Bitcoin price action is sufficiently boring. Chart: Intensity of speculators playing casino games.”

Increased Bitcoin selling pressure from Germany and Mt. Gox?

The German government-labeled wallet first raised suspicions of potential Bitcoin selling on June 19, when it transferred 6,500 BTC worth over $425 million.

Apart from transfers to untagged wallets, the majority of the Bitcoin was moved to centralized exchanges (CEXs), suggesting the government might be preparing to sell Bitcoin.

Before these transactions, the wallet had held nearly 50,000 BTC since February 2024. These funds are believed to have been seized from the operator of the pirated movie website Movie2k.

July could bring additional selling pressure on Bitcoin as the collapsed cryptocurrency exchange Mt. Gox announced plans to start repaying its defunct users.

Mt. Gox owes over $9.4 billion worth of Bitcoin to approximately 127,000 creditors, who have been waiting more than 10 years to recover their funds. This repayment could introduce significant selling pressure on Bitcoin.