#ChartoftheDay The price of $Bitcoin has experienced sharp declines recently. This has sent shockwaves across the whole #crypto market, especially in altcoins, which have seen dips as deep as 20%.

Two specific events might have contributed to #BTC’s dip. One is that Mt. Gox is finally starting to reimburse its users for their losses in BTC and BCH after 10 years. And that has triggered selling-offs among these reimbursed users. Another is the German government’s repeated selling of millions of Bitcoin from its reserves. According to data on Arkham, addresses marked as belonging to the German government have started moving Bitcoin to centralized exchanges and market makers from three weeks ago. The following drops in BTC price indicated that such moves were meant for dumping.

The German government is not the only government that holds Bitcoin. So does the US government. Unlike countries like El Salvador, which buy Bitcoin as investment assets, the German and US governments hold Bitcoin mainly because they confiscated it from unlawful practices. As such holdings bear no cost, these governments are more likely to sell them off consecutively.

Given that the German government's sell-off is still ongoing and Mt. Gox's reimbursement will also last more than three months, crypto prices are expected to continue to face challenges.