The German address holds just over 13k. That is, almost 50k more than it originally held.

Here are 5 things you need to know...

1. Three weeks ago, the German government's Bitcoin address began selling their $BTC .

Since then, the price of BTC has plummeted, rising from $65k to $535k, a nearly 18% decline.

And it doesn't look like they're stopping.

2. The fact is that it wasn't the German government that was selling the Bitcoin, but a small state in eastern Germany called Saxony.

Earlier this year, the Saxony State Criminal Police seized nearly 50,000 Bitcoins from http://Movie2k.to. The pirated site was found guilty of money laundering and other illegal activities.

3. Why sell the seized Bitcoins?

According to the CEO of the German Blockchain Research Lab, "seized assets are always liquidated within a certain period of time."

He added that this is a regular business process.

4. Why is this wallet German and not Saxon?

The police have been involved in the preliminary investigation.

But both the transfer and the sale are directed by the state.

5. In most cases, seized assets can only be transferred or sold. But this is not the case in this case.

If the assets are difficult to store or easily depreciate, the state can require or initiate an emergency sale.

And Bitcoin is extremely volatile.

All in all, we can see why the wallets marked by the German government are selling their BTC.

We can expect that unless no one else buys, all their holdings will be emptied soon.

Therefore, unless all BTC are bought, the losses will not stop. Expect the Bitcoin price to be trapped below $60,000 for some time.