The German government continues to reduce its Bitcoin holdings amid a broad market price decline. On the other hand, BlackRock seems to be taking advantage of this situation to accumulate more Bitcoin.
Bitcoin Sale by the German Government
Based on data from Arkham Intelligence as of Thursday (11/7/2024), the German government has resumed its Bitcoin sales and now only has 13,177 $BTC worth almost US$766 million left, out of a total of 50,000 $BTC previously confiscated from the illegal streaming platform Movie2k. This selling action has triggered pressure on the price of Bitcoin, which fell below the level of US$60,000 and continued to fall to US$53,000 on July 5.
The total remaining Bitcoin ownership belongs to the German government. Source: Arkham Intelligence
BlackRock Records Significant Inflow for ETF Products
On the other hand, institutional investors are starting to take advantage of the current market situation to accumulate Bitcoin, especially through spot Bitcoin ETF products. Data from Farside Investors shows that Bitcoin ETFs have seen massive fund inflows since July 5, around the same time Bitcoin hit its lowest level of the month. The largest recorded inflow was US$294.8 million on July 8, with BlackRock's iShares Bitcoin Trust (IBIT) leading the charge with inflows of up to US$187.2 million in the same period.
BlackRock Wallet Activity
Wallet activity associated with BlackRock shows some Bitcoin moving from Coinbase Prime to the IBIT product. Currently, BlackRock is known to hold around 310,470 $BTC worth US$18.05 billion.
BlackRock's latest wallet activity. Source: Arkham Intelligence
Conclusion
The current market situation shows an interesting dynamic between the German government's sell-off and accumulation by large institutions such as BlackRock. This move reflects the long-term optimistic view of Bitcoin among institutional investors.
Disclaimer
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