On July 12, according to Arkham Intelligence data, the German government completed the sale of its Bitcoin reserves, transferring the last 3,846 BTCs to "Flow Traders and 139Po," identified as institutional/OTC deposit services. This transaction followed weeks of intense sales, during which the government liquidated a total of 50,000 Bitcoins, derived mainly from an asset seizure linked to Movie2K, a film piracy site.
The massive sale by the German government exerted considerable pressure on the market, keeping the price of Bitcoin below $60,000 and influencing its exponential moving average to 200 days. However, despite pressure to sell, institutional investors took advantage of the downturn. CoinShares reported inflows of $295 million into US exchange-traded funds (ETFs) in the week of July 8, reversing a trend of reduced inflows.
The future of the Bitcoin market is now under the shadow of Mt. Gox’s repayment schedule, which could introduce additional sales pressure. Mt. Gox, an exchange that collapsed in 2014, is planning to return $8.2 billion in Bitcoin to its creditors. Analysts are divided on the impact this move will have on the market. Jacob King predicts that investors could sell up to 99% of Bitcoins received, while Tony Sycamore of IG Markets believes that the effect could be limited, as the market has already priced this news.
Despite initial fears, the Bitcoin market has shown remarkable resilience. After Germany’s final transfers, the price of Bitcoin underwent significant fluctuations, but showed signs of recovery. On June 24, the price dropped from $64,000 to less than $59,000, before suffering a further drop to $54,000 between July 3 and July 5. However, after the completion of German sales, the price rose above $60,000.
The German government’s mass sale represented one of the largest Bitcoin liquidations on the market, influencing investor sentiment and the price of Bitcoin. German legislator Joana Cotar criticized the decision, arguing for the adoption of Bitcoin as a strategic reserve currency. In addition, the liquidations have fueled concerns among users, highlighted by critical messages and trolling on Germany’s public wallet.
With the sale completed, the focus now shifts to Mt. Gox and the potential impact of its refunds. The Bitcoin market, although currently under pressure, has shown remarkable resilience, leaving investors to look carefully at future developments.
Viola Meacci, student of Biomedical Engineering at the University of Pisa, has always been interested in the world of journalism. In her job, she explored the world of blockchain, cryptocurrencies, NFT and metaverse which she now very is passionate about it .
