According to cryptocurrency analytics firm Arkham, the German government is currently inching closer to liquidating its entire Bitcoin fortune.
Earlier today, it sent roughly $286 million worth of Bitcoin to various exchanges, including Kraken and Coinbase.
Now, the German state of Saxony has only one-tenth of the Bitcoins that were originally confiscated from one of the operators of the notorious Movie2k piracy website in early 2024.
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At this point, it seems likely that the selling spree is going to end this week. Thus, the market will no longer have to deal with one of the main bearish headwinds. Blockstream CEO Adam Back even predicted that the German government would end up selling its remaining Bitcoin on Thursday.
Since early June, the German government has already transferred roughly $615 million worth of Bitcoin to various trading platforms, becoming one of the main causes of severe selling pressure plaguing the market.
Coming to the rescue
Prominent trader Josh Olszewicz has commented that the most recent round of selling initiated by the German government has been absorbed "like a dry sponge."
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Back has also commented that Bitcoin ETF buyers came to the rescue and helped to prop up the market.
This week, these products saw substantial inflows. On Wednesday, they recorded another $147 million worth of fresh money. This indicates that Bitcoin ETF investors jumped at the opportunity to buy the dip.
As noted by Juan Leon, senior investment strategist at Bitwise Invest, Bitcoin ETFs have become the fastest-growing ETF category of all time. "Since their January launch through June 30, they bought almost 2x the amount of new BTC issued," Leon added.
