The German government has continued its Bitcoin sell-off, moving approximately 3,100 BTC worth around $178 million within an hour on July 9.
Additionally, they withdrew about 1,700 Bitcoin, valued at $91.78 million, from Bitstamp, recouping BTC holdings from the exchange.
At the time of writing, the government has shifted another 3,107 BTC from its main holdings, likely preparing for an imminent sell-off.
The primary government address holds around 26,000 BTC worth $1.5 billion, while the off-loading address holds 4,800 BTC worth $276.61 million.
According to Arkham Intelligence, since 7:30 am UTC on July 9, there has been a total outflow of 3,100 BTC.
Of this, 2,500 BTC were sent to an unknown B2C2 Group, 400 BTC to the centralized exchange Kraken, and 200 BTC to an unknown wallet.
The German government sold an additional $900 million worth of BTC on July 8, indicating plans to continue gradually selling its remaining $1.5 billion in Bitcoin holdings.
The 16,309 BTC sold is now worth over $930 million despite the mass sell-off, suggesting buyers remain confident at this price range.
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Wall Street traders anticipate a 72% chance of the US Federal Reserve cutting interest rates in September, which could boost investment in BTC.
This macroeconomic trend tends to significantly impact assets like BTC, seen as a risk-on asset, unlike gold, which attracts liquidity during geopolitical instability.
Alongside the BTC sell-off, a reduction in BTC miner activity and reserve sell-offs suggests market sentiment might be nearing its bottom.
According to Bitfinex analysts, July 6 and 7 market data indicated a local bottom, despite Mt. Gox starting its BTC and Bitcoin Cash (BCH) repayments.
Despite the BTC sell-offs by the German government and Mt. Gox repayments, several indicators suggest BTC is poised for a rebound.
BTC reached its lowest point since late February, dropping to $53,550 before rebounding to current highs of $57,600.
The relative strength index (RSI) showed a growing divergence between the falling price and rising RSI value, suggesting weakening sell pressure.
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