Bitcoin’s Tug of War: German Government Selling vs. Mt. Gox Repayments

• The German government transferred 16,039 BTC and received 3,673 BTC.
• The authorities are expected to have sold 12,366 BTC.
• Bitcoin continued to trade above $57,000, up 3.4% in 24 hours.

The German government is once again on the move, transferring large amounts of Bitcoin (BTC). Moving digital assets to exchanges typically signals an impending sell-off, which could lead to BTC prices falling.

According to Lookonchain’s data, the German government transferred 16,039 BTC, worth approximately $915.3 million, from its wallet and received 3,673 BTC, valued at $206.5 million, within the last 24 hours. Of these, authorities are expected to have sold 12,366 BTC worth $708.8 million.

Currently, the German government’s Bitcoin wallet holds 27,461 BTC, valued at $1.55 billion. Notably, on Monday, the authorities transferred 9,634 Bitcoin worth $551 million to major digital asset trading platforms like Kraken, FlowTraders, Coinbase, Bitstamp, Cumberland, and B2C2 Group. An additional 500 Bitcoin was deposited to Coinbase and Bitstamp on Monday as well.

Meanwhile, Bitcoin’s price has jumped 3.42% in the past 24 hours, and the leading cryptocurrency is trading at $57,034 at the time of writing, according to CoinMarketCap data. BTC rose from lows of $55,000 and is now attempting to reclaim the $60,000 price region. However, the German government’s continuous Bitcoin sell-off may hinder this upward momentum.

The Mt. Gox Bitcoin repayment is also influencing Bitcoin price action. As previously reported, Bitbank and SBI VC Trade have received 47,229 BTC (approximately $2.7 billion), but they have yet to distribute 94,771 BTC (roughly $5.4 billion).

As the chart above shows, the Bitcoin Relative Strength Index (RSI) has recovered from the oversold region and reads 35.28. While still bearish, the gradient of line suggests that higher prices could follow if buying volume remains high.