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YEREVAN (CoinChapter.com) — The German government has offloaded its last Bitcoin holdings, impacting the cryptocurrency market. On July 12, it sold 3,846 Bitcoin (BTC), as reported by Arkham Intelligence. The Bitcoin was sent to “Flow Traders and 139Po,” described by Arkham as “likely institutional deposit/OTC service.”
German Government’s Massive Bitcoin Sell-Off Keeps Prices Below $60,000
The German government liquidated tens of thousands of Bitcoin over several weeks. This move significantly affected Bitcoin’s market price. Over the period, the government sold 50,000 Bitcoin, mostly obtained through asset seizures. This extensive sell-off kept Bitcoin’s price below $60,000 and under its 200-day exponential moving average.
German Government Sells Last Bitcoin Holdings. Source: Arkham Intelligence
Analyst Jacob King noted that the government’s actions maintained the market’s suppressed state. Consistent selling pressure prevented any significant upward movement in Bitcoin’s price.
Mt. Gox Reimbursement Plan Expected to Prolong Bitcoin Selling Pressure
Despite the German government’s depletion of its Bitcoin reserves, selling pressure is expected to persist. The upcoming $9 billion Mt. Gox reimbursement plan may add to this pressure. Analysts predict this plan will continue to impact Bitcoin prices in the weeks ahead.
Jacob King believes up to 99% of Mt. Gox‘s $8.2 billion holdings might be sold, potentially worsening the market’s current state. The Mt. Gox exchange collapsed in 2014 and has a significant amount of Bitcoin that creditors are now looking to liquidate. Investors have anticipated this large-scale reimbursement for some time.
IG Markets analyst Tony Sycamore offers a different view. He suggests the reimbursement plan’s impact might not be as severe as many expect. Additionally, Sycamore notes that many factors will influence creditors’ actions, making it hard to predict the exact market impact. Furthermore, he believes the potential reimbursement has already been factored into the current Bitcoin price by many investors.
Bitcoin Rises to $58K as Institutional Investors Buy the Dip Amid Sell-Off
While selling pressure was high, institutional investors saw an opportunity. Data from CoinShares revealed that U.S. exchange-traded funds (ETFs) recorded $295 million in ion on July 8. These inflows indicate some investors are buying the dip, taking advantage of the lower Bitcoin prices caused by the German government’s sell-off.
At the time of writing, Bitcoin was trading at $58,117.98, showing a 1.66% increase over the last day. The market capitalization stood at approximately $1,146,096,939,794, with a 24-hour trading volume of $22,426,689,124, which represents a decrease of 20.66%. The circulating supply of Bitcoin was 19,720,178 BTC, making up 93.91% of the total supply, which is capped at 21,000,000 BTC. The fully diluted market cap was $1,220,880,410,078.
Bitcoin Trading at $58,117 Amid Market Fluctuations. Source: CoinMarketCap
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