Germany's ongoing Bitcoin (BTC) sell-off and recent Mt. Gox refunds have created uncertainty in the cryptocurrency market.
Despite the recent sell-off, the Eurozone's largest economy continues to hold 39,826 BTC worth approximately $2.2 billion, according to Arkham Intelligence.
Since mid-June, the German government has been liquidating Bitcoin holdings, adding to the downward pressure on the market.
Earlier this year, the German Federal Criminal Police Office (BKA) seized 49,857 BTC from the operators of Movie2k.to, a privacy website that ceased operations in 2013.
More than 10,000 BTC have been sold in the past few weeks, affecting the market rate of the cryptocurrency.
Bitcoin's spot price has fallen nearly 20% to $54,260 in the last four weeks, with a significant 13% drop in the last seven days alone.
These selloffs have raised concerns about potential market turbulence, as Germany's remaining Bitcoin holdings represent about 9% of BTC's $25.3 billion 24-hour trading volume. The possibility of further liquidations indicates continued price instability.
Tron founder Justin Sun recently added to market uneasiness by offering to purchase Bitcoin off-market from the German government to mitigate the negative impact on the spot price.
Sun's proposal underscores a broader sentiment that Germany's strategy may not be compatible with long-term market stability.
*This is not investment advice.