The German authorities resumed its Bitcoin (BTC) outflow spree right now with roughly 16,039 BTC despatched to exchanges and market makers. This quantity is equal to almost $895 million. After the motion was reported by on-chain knowledge platform Arkham Intelligence on X, Bitcoin took a fast 3.5% dive in a couple of minutes earlier than a fast rebound.

In response to a dashboard by Arkham, the German authorities nonetheless holds 23,788 BTC, which interprets to over $1.3 billion. The authorities dump is without doubt one of the elements identified by buyers to be pressuring the Bitcoin price, together with the current Mt. Gox’s collectors compensation.

Justin Solar, the founding father of Tron, even provided to chop a cope with the German authorities to purchase all their BTC holdings. Nonetheless, it isn’t clear if this was an precise supply or simply Solar chasing the highlight.

Notably, CryptoQuant CEO Ki Younger Ju highlighted on X that the federal government dump is “overestimated.” He explains that $224 billion has flowed in crypto since 2023, and the government-seized Bitcoin stash contributes to solely $9 billion. “It’s only 4% of the total cumulative realized value since 2023. Don’t let govt selling FUD ruin your trades.”

However, Bitcoin’s “overhang supply”, as Mt. Gox and authorities holdings are referred to as, nonetheless leaves buyers fearing an upcoming dump. This places the market in a tricky spot, as BTC tries to reclaim its main price degree of $60,600, as underscored by dealer Rekt Capital.