The German government has recently sold 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 believed to be institutional deposit and over-the-counter services.
This sell-off by the German government is part of a larger effort to liquidate tens of thousands of Bitcoin that they have accumulated over several weeks. These Bitcoins were mostly obtained through asset seizures. As a result of this extensive sell-off, the price of Bitcoin has remained below $60,000 and its 200-day exponential moving average.
Analyst Jacob King has noted that the government’s actions have kept the market suppressed, with consistent selling pressure preventing any significant upward movement in Bitcoin’s price.
However, the selling pressure is expected to continue despite the German government depleting its Bitcoin reserves. This is due to the upcoming Mt. Gox reimbursement plan, which is estimated to be worth $9 billion. Analysts predict that this plan will also impact Bitcoin prices in the coming weeks.
Jacob King believes that a large portion of Mt. Gox’s $8.2 billion holdings might be sold, further 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 reimbursement has been anticipated by investors for some time.
On the other hand, IG Markets analyst Tony Sycamore offers a different perspective. He suggests that the impact of the reimbursement plan may not be as severe as expected. Sycamore also notes that there are many factors that will influence creditors’ actions, making it difficult to predict the exact market impact. Furthermore, he believes that many investors have already factored in the potential reimbursement into the current Bitcoin price.
Despite the sell-off and market fluctuations, institutional investors have seen an opportunity and have been buying the dip. Data from CoinShares shows that U.S. exchange-traded funds (ETFs) recorded a $295 million inflow on July 8, indicating 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, representing 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, which is 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.