The German government has sold off its remaining Bitcoin holdings, causing a significant impact on the cryptocurrency market. According to Arkham Intelligence, on July 12, the government sold 3,846 Bitcoin to “Flow Traders and 139Po,” which are described as likely institutional deposit/OTC services.
Over the course of several weeks, the German government has liquidated tens of thousands of Bitcoin, most of which were obtained through asset seizures. This extensive sell-off has kept the price of Bitcoin below $60,000 and under its 200-day exponential moving average.
Analyst Jacob King pointed out that the government’s actions have maintained the suppressed state of the market. The consistent selling pressure has prevented any significant upward movement in Bitcoin’s price.
Furthermore, the upcoming $9 billion Mt. Gox reimbursement plan is expected to prolong the selling pressure. Analysts predict that this plan will continue to impact Bitcoin prices in the coming weeks. Jacob King believes that up to 99% of Mt. Gox’s $8.2 billion holdings might be sold, potentially worsening the current state of the market. Mt. Gox, which collapsed in 2014, has a significant amount of Bitcoin that creditors are now looking to liquidate. This large-scale reimbursement has been anticipated by investors for some time.
However, IG Markets analyst Tony Sycamore offers a different perspective. He suggests that the impact of the reimbursement plan might not be as severe as many expect. Additionally, Sycamore notes that there are many factors that will influence creditors’ actions, making it difficult to predict the exact market impact. He also believes that many investors have already factored in the potential reimbursement into the current Bitcoin price.
Despite the selling pressure, institutional investors have seen an opportunity and have been buying the dip. Data from CoinShares reveals that U.S. exchange-traded funds (ETFs) recorded $295 million in inflows on July 8. This indicates that some investors are taking advantage of the lower Bitcoin prices caused by the German government’s sell-off.
As of now, Bitcoin is trading at $58,117.98, showing a 1.66% increase over the last day. The market capitalization is approximately $1,146,096,939,794, with a 24-hour trading volume of $22,426,689,124, representing a decrease of 20.66%. The circulating supply of Bitcoin is 19,720,178 BTC, accounting for 93.91% of the total supply, which is capped at 21,000,000 BTC. The fully diluted market cap is $1,220,880,410,078.
In summary, the German government’s sell-off of Bitcoin has had a significant impact on the market, keeping prices below $60,000. The upcoming Mt. Gox reimbursement plan is expected to prolong the selling pressure, but institutional investors have been buying the dip, taking advantage of the lower prices. Despite market fluctuations, Bitcoin is currently trading at $58,117.98.