Standouts:
- Germany no longer has any bitcoin to sell.
- Over 3,800 BTC was exchanged to Flow Traders and 139Po.
- Bitcoin appears to be free from Germany for now, but what about the US, China, and Mt. Gox?
The German government no longer holds any Bitcoin after officially selling all of its cryptocurrencies. This move resulted in Bitcoin prices remaining below $60,000 for several weeks. On July 12, the German government sold its remaining Bitcoin assets, according to information provided by Arkham Intelligence.
Arkham described the final transaction as a “likely institutional deposit/OTC service,” in which 3,846 bitcoins went to “flow traders and 139Po.” The transaction took place after the German government put pressure on sellers for several weeks and sold thousands of bitcoins in several installments.
Source: Arkham Intelligence
The German government has dumped a large amount of bitcoin in the last three weeks. Most of this bitcoin came from asset seizures. Bitcoin dumping kept the market underneath the $60,000 cost point and the 200-day exponential moving normal.
Institutional selling pressure weighed down the market
In spite of the German government selling its Bitcoin possessions, the $9 billion Mt. Gox repayment plan could lead to more selling pressure. This selling pressure could drive Bitcoin’s price lower in the coming weeks and maintain an atmosphere of fear, uncertainty, and doubt in the market.
Analyst Jacob King thinks that up to 99% of investors looking for windfall profits could sell Mt. Gox’s $8.2 billion in equity. The exchange crashed in 2014 when bitcoins were still selling for hundreds of dollars.
But according to IG Markets analyst Tony Sycamore, the Mt. Gox payout will not have as devastating an impact on the markets as many investors fear. Sycamore claims that there are too many variables at play to predict how Mt. Gox’s creditors will act. According to the analyst’s predictions, half of the replenished supply could reach the exchanges in July.
The expert was sure that the refunds had already been factored into the bitcoin market. Sycamore told CoinTelegraph that investors have known about the refund plan for a long time and are not astonished by it.
Institutional investors bought on dips
Institutional investors bought the dips when selling pressure was at its highest. CoinShares data shows US exchange-traded funds (ETFs) saw inflows of $295 million during the week of July 8, reversing several weeks of disappointing inflows into investment funds.
