On July 12, the German government finalized the sale of its last holdings of Bitcoin, completing a transaction involving 3,846 Bitcoin. These assets, valued at approximately $62,604 per Bitcoin, were transferred to “Flow Traders and 139Po,” entities specializing in institutional deposit and over-the-counter services, as reported by Arkham Intelligence.
The majority of the 50,000 Bitcoin sold by Germany over the past three weeks originated from asset seizures. This extensive sell-off culminated weeks of heightened selling activity by the German government, which distributed tens of thousands of Bitcoin in multiple phases. This significant liquidation has played a role in stabilizing Bitcoin’s price, which saw a low of $54,000 on July 5.
Despite Germany’s exit from Bitcoin holdings, market pressures persist due to the upcoming $9 billion Mt. Gox reimbursement plan. Mt. Gox, which collapsed in 2014 when Bitcoin was priced in the hundreds of dollars, remains a lingering concern for the market. The reimbursement plan aims to compensate creditors, potentially exerting additional selling pressure in the coming weeks. The exact impact on the market remains uncertain due to various factors.
Amidst the increased selling pressure, institutional investors seized the opportunity to buy during the dip. Data from CoinShares indicated that U.S. exchange-traded funds (ETFs) experienced inflows of $295 million during the week of July 8, reversing a trend of subdued inflows into these investment vehicles. This activity underscores institutional investors’ confidence in Bitcoin’s long-term prospects.
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