Germany Sells Off Its Final Bitcoin Holdings
The government of Germany has sold all of its Bitcoin reserves. The German authorities started selling their Bitcoin reserves weeks’ ahead starting speculation among investors. The price of the Bitcoin at the time of sales remained within $60K.
Data projections from Arkham Intelligence have indicated that as of 12th July 2024, the last unit of Bitcoin was sold. The final transaction transferred 3846 Bitcoins to Flow Traders and 13Po.
The Impact of BTC Sale on the Price Value
This address is anonymous but Arkham postulates that it may belong to an institutional platform or OTC service. The transaction led to an increase in selling pressure stemming from German government sales. The authorities opted to sell thousands of Bitcoin units in multiple installments. During the course of 44 days, German authorities sold around 50 thousand Bitcoin units.
The officials acquired the Bitcoins as part of the seizure of an illegal venture. This sale retained the value of Bitcoin below $60K for the same duration and 200-day exponential moving average.
Meanwhile, the ongoing sales of $9 billion in Bitcoin from Mt. Gox is another speculative force that could serve as the price decreasing factor for Bitcoin in upcoming days. Analysts have projected an air of FUD on account of reimbursement payment plan.
Mt. Gox Bitcoin Sales
Mt. Gox has been defuncted since 2014 and it has appointed trustees to manage the funds on the platform in order to reimburse investors. Tony Sycamore, IG Markets analysts have noticed that Mt. Gox Bitcoin sales are unlikely to have a catastrophic impact on Bitcoin prices.
The analyst has retained that there are a number of factors that determine the response of Mt. Gox creditors. He further stated that half of the reimbursed token supply may be sent to various regulated exchanges in July.
The analyst further stated that the selling pressure stemming from Mt. Gox sales has already been priced in. He further stated that the sell-off has been known among investors for a long time and does not come as a surprise. Meanwhile, institutional investors continued to purchase more Bitcoin during the height of the selling pressure.
CoinShares has indicated that US-based ETFs reported generating $285 million in inflows as of 8th July. This period indicated a plateau of spot value in comparison to depleting outflows during the last few weeks for the spot Bitcoin ETFs.
ARK Invest has also commented on the matter of the German government’s decision to sell Bitcoin reserves. Remarks from Ark indicate that Bitcoin miners are working on reviving a bullish trend.
Ark Invest Predicts Bitcoin Oversold Following German Government Sales
Ark Invest published a report on the impact of the German government’s Bitcoin sales. The report suggested that Bitcoin was oversold in the last month following the decision of the German government to sell their entire Bitcoin reserve opting for a multi-billion dollar sale of 50 thousand Bitcoin units.
The Bitcoin reserves have been in the custody of the German authorities since 2020. This sale resulted in crashing Bitcoin prices from $70 thousand to below $55 thousand for a brief duration in July.
The short-term realized profit/loss miner outflows and sales from miners postulate that Bitcoin is oversold as per this report. However, the current trends revealed that miners are holding on to their Bitcoin reserves with a bullish outlook according to Ark analysts. For July, billions of dollars have flowed into Bitcoin ETFs valued at $1.35 billion as per data projections from CoinShares.
BlackRock’s iShares Bitcoin Trust (IBIT) reported $107 million in inflows as of 18th July with 10 consecutive days of positive investments. Thomas Fahrer, the co-founder of data analysis firm Apollo has provided these statistics. ARK further noticed that as the purchasing power has continued to decline, the resulting economic weakness has become more prominent.
Some analysts have also talked about the ensuing speculative pressure on Bitcoin prices on massive sales from big holders. One such source is Mt. Gox which is currently organizing a massive Bitcoin sale as part of reimbursement agreement. However, the news about the German government’s decision to sell their Bitcoin reserves was unexpected which impacted Bitcoin prices for the better part of June.
