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Bitcoin Holds Steady Amid German BTC Liquidation

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Bitcoin (BTC) remains steady at around $58,500 despite the ongoing divestment by German authorities. The leading cryptocurrency by market value struggled to maintain gains above $59,000, trading at $58,470 at press time, down 1.6% from a high of $59,450 earlier.

German State of Saxony's BTC Movement

According to Arkham Intelligence, the German Federal Criminal Police Office (BKA) moved 5103.5 BTC, worth nearly $300 million, to exchanges Kraken and Coinbase, as well as market makers like Cumberland and Flow Traders. This action is part of their strategy to liquidate BTC seized from a privacy website.
The German Government just sent another 3000 BTC ($176.26M) to Flow Traders.

Ongoing Liquidation Impact

The German state of Saxony has been actively moving bitcoin for the past few weeks. Since starting in late June, Saxony has sold 30,997 BTC, significantly impacting the crypto market. BTC prices have dropped over 15% in the past four weeks, hitting a low of $53,550 last week. Currently, the BKA-linked wallet holds 18,860 BTC.

Market Adaptation and Investor Sentiment

The market is slowly adapting to the ongoing BTC divestment. Analysts like Valentin Fournier from BRN note that the market is growing more comfortable with these outflows. The renewed inflows into Bitcoin ETFs indicate a potential trend reversal, supported by technical indicators like the RSI.

Economic Indicators and Future Outlook

Despite the recent market turbulence, the broader outlook for Bitcoin remains positive. Major economies are in an expansionary phase, and traditional markets are showing peak optimism for technology stocks. While positive news is expected from the upcoming U.S. CPI report, caution is advised as potential hawkish comments could cause market instability.