The German Federal Criminal Police Office started selling some of the Bitcoin proceeds it confiscated in May. Thus far, the government has offloaded over 9,641 BTC worth more than $550 million on cryptocurrency exchanges in small tranches.
While its Bitcoin holdings pale in comparison to the broader circulating supply, the market sentiment to this sell-off is rather erratic. Earlier today, the German police transferred 1,300 BTC to Kraken, Coinbase (NASDAQ:COIN) and Bitstamp, a transfer that triggered a massive sell-off in the price of the coin.
At the time of writing, the Bitcoin price has lost its edge. The coin is changing hands for $57,400.54, down by 4.58% in the past 24 hours. This is the first time since mid-March that the price of Bitcoin will be trading as low as $57,000, a trend that does not speak well of network health.
The market may grow a thick skin as concerns the occasional sell-off from the government. This is a survival strategy, especially because more dumping is coming into the market soon.
Like the German government, the United States government is also offloading its stash. This governmental sell-off might be complicated by the expected Mt. Gox repayment and likely sell-off. The market needs its inbuilt resilient mechanism to handle the bearish days ahead, at least until Sun’s offer is accepted.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
