Bitcoin struggles to break key level amid easing selling pressure from German government

Key Takeaways

• Bitcoin's early peak at $59,300 fell short of the $60,000 threshold.
• German government's reduced Bitcoin holdings may influence market dynamics.

Bitcoin’s price reached a high of $59,300 early Wednesday but failed to break the key $60,000 level, according to data from TradingView. The struggle came amid a decrease in selling pressure from the German government.

Bitcoin approached the $60,000 mark – Source: TradingView

On Wednesday, wallets linked to the German government moved around 5,853 Bitcoin (BTC), worth nearly $350 million in various portions to external destinations, including crypto platforms like Coinbase, Kraken, market maker Cumberland DRW, and Flow Traders, Arkham’s data shows.

The German government continues to send BTC to crypto platforms – Source: Arkham Intelligence

Yesterday, the entity reportedly transferred around 6,600 BTC. It appeared that the government also received a portion of its Bitcoin stash sent to Bitstamp.

However, there has been a reduction in selling pressure from the German authorities. Bitcoin was moving steadily between $57,500 and $58,000 on Tuesday, according to TradingView.

After several transfers, the government’s Bitcoin reserves have diminished to over 18,100 BTC, now valued at around $1.06 billion, a sharp drop from the original 50,000 BTC.

Since June 18, when the government began these transactions, Bitcoin’s price has fallen by about 12%. However, the government’s wallet activities are not the only factor that affects market dynamics.

The recent price drop of Bitcoin can be partially attributed to the repayment of Mt. Gox creditors, which has likely had a negative impact on the currency.

Following the payout announcement last month, Mt. Gox’s Rehabilitation Trustee confirmed it had started the repayment process last Friday. Before the confirmation, the Mt. Gox-labeled wallet had initiated a $2.7 billion transaction , driving the price of Bitcoin down below $54,000 .

At the time of reporting, Bitcoin is trading at around $58,600, up 1% in the past 24 hours, per TradingView’s data.