🆘️Germany sell pressure more than compensated by MicroStrategy’s BTC purchase:
➡️Some analysts suggested that a large sale of Bitcoin by the German government caused the crypto market downturn. However, this explanation overlooks the fact that traditional finance investors reacted to unfavorable macroeconomic data. Traders are concerned that the stock market may have peaked and that the United States fiscal situation is weakening.
According to the onchain crypto analytics firm Arkham, a wallet linked to the German government transferred 6,500 BTC to exchanges on June 19, worth $425 million at the time. Arkham claims that the wallet held nearly 50,000 BTC, believed to have been seized from the pirated movie website Movie2k, which operated in 2013. The evidence suggests that this entity sent BTC to Kraken, Bitstamp and Coinbase, leaving little doubt about its origin and effective sale.
However, this theory is flawed because the U.S.-based business intelligence firm MicroStrategy disclosed on June 20 that it had purchased an additional 11,931 BTC for $786 million. Thus, MicroStrategy’s buy covered the selling pressure, including the two-day $292 million net outflow from U.S. spot Bitcoin exchange-traded funds.
Given that no other regulatory changes or events could have negatively impacted the sentiment of cryptocurrency investors in the past couple of days, one should focus on the traditional finance industry, particularly on macroeconomic data. Despite the short-term correlation between the S&P 500 index and the crypto sector, traders typically exit risk-on positions during periods of uncertainty.
