Ark Invest says Bitcoin is oversold after German government sell-off

July 20, 2024 - Asset management firm ARK Invest released a report on July 18 stating that Bitcoin was oversold in June after German authorities sold off billions of dollars worth of Bitcoin. The German government sold 50,000 Bitcoins that were confiscated from the streaming platform Movie2k in 2020. The massive sell-off caused the price of Bitcoin to drop below $55,000 from over $70,000 in early June.

The report also highlights that miner capitulation could be a bullish indicator for Bitcoin’s future price. Despite selling pressure, investors continue to put money into Bitcoin ETFs, with recent inflows exceeding $400 million, demonstrating optimism in the market.

CryptoQuant’s data supports ARK’s view on miner capitulation, with miners’ earnings declining significantly since the Bitcoin halving event, forcing them to cash out to maintain liquidity.

Despite bullish market sentiment, the liquidation of Mt. Gox creditors could cause Bitcoin price volatility. The exchange recently transferred over 48,000 Bitcoin to an unmarked address, with Kraken confirming that the funds have been received and will begin the payment process. The move could have further impact on the market.