BTC selling pressure intensifies, US and German governments successively dump Bitcoin, start of a sell-off?

In recent times, the market has been continuously bearish, with investors not only worrying about the selling pressure from the distribution of bitcoins by Mt. Gox, but also hearing reports of bitcoins being seized by the governments of Germany and the United States. Bitcoin has been under heavy selling pressure in recent days, dropping to a low of 58,402 at one point, and was trading at 61,085 at the time of writing. In the short term, it is still unable to break above the moving average.

The selling pressure of bitcoins from Mt. Gox is not as heavy as expected, with the majority being long-term holders of BTC.

US Government Transfers 3,940 Bitcoins

According to on-chain data tracked by Arkham, a wallet associated with the US government moved 3,940 Bitcoins worth approximately $241 million to Coinbase Prime last night. The US government still holds 213,546 Bitcoins, valued at around $13.1 billion, making it the largest holder of Bitcoins among national governments.

Arkham Research tracked the transactions in the US and found that these 3,940 Bitcoins were originally confiscated from drug trafficker Banmeet Singh and seized during a trial in January 2024.

Is Germany Also Planning to Sell BTC?

According to on-chain data tracked by Arkham, the German Federal Criminal Police Office, known as Bundeskriminalamt or BKA, transferred a total of 650 BTC worth about $40.29 million to exchanges Coinbase, Bitstamp, and Kraken in the past 2 days.

As of the time of writing, BKA still holds 45,264 Bitcoins, valued at approximately $2.76 billion.

According to the Bitcoin holdings data platform BitcoinTreasuries, the German government ranks fourth in Bitcoin holdings, following the US, China, and the UK.