German Government Sells Off Remaining Bitcoin Holdings
Mitchell Nixon
On 12th July, Germany’s government disposed of its remaining Bitcoin holdings, according to information from Arkham Intelligence.
The concluding transaction involved the transfer of 3,846 Bitcoin to “Flow Traders and 139Po,” which Arkham identified as “likely institutional deposit/OTC service.” This transaction came after several weeks of heightened selling activity by the German government, during which they offloaded tens of thousands of Bitcoin in various batches.
Over the past three weeks, the German government has sold approximately 50,000 Bitcoin, primarily sourced from an asset seizure. This significant sell-off has been a major factor in keeping the market below the $60,000 mark and its 200-day exponential moving average.
Although the German government has depleted its Bitcoin reserves, the $9 billion Mt. Gox reimbursement plan may continue to exert downward pressure on Bitcoin prices in the coming weeks, perpetuating the atmosphere of fear, uncertainty, and doubt that has troubled the market in recent months.
The exchange collapsed in 2014 when Bitcoin was still trading at several hundred dollars.
Tony Sycamore, an analyst at IG Markets, contends that the Mt. Gox payments will not have the catastrophic impact on the markets that many investors fear. Sycamore argues that there are numerous variables influencing the actions of the Mt. Gox creditors. He forecasted that half of the reimbursement supply might reach exchanges at some point this July.
Nevertheless, Sycamore is confident that the reimbursement has already been factored into the Bitcoin market. He stated that investors have been aware of the reimbursement plan for quite some time, so it does not come as a surprise.
Amidst the intensified selling pressure, institutional investors seized the opportunity to buy the dip. CoinShares data indicated that United States exchange-traded funds (ETFs) attracted $295 million in inflows during the week of 8th July, reversing a trend of several weeks of subdued inflows into these investment funds.