- The German government has once again created ripples in the crypto market by liquidating $178 million worth of Bitcoin in a recent sale.
- Traders and investors are wary, anticipating further downward pressure on the market.
- Bitcoin advocate Samson Mow remains optimistic, asserting the strong demand for BTC despite significant liquidations.
The German government’s continued Bitcoin sales raise eyebrows among investors, but the resilient demand suggests robust market confidence.
German Government Continues Bitcoin Liquidation
The German government’s ongoing Bitcoin liquidation has significantly impacted the crypto market. Recently, authorities offloaded 3,100 BTC worth approximately $178 million. Moreover, another 1,700 BTC were pulled back, indicating the potential for additional sales soon. Currently, the main government wallet holds around $1.5 billion in Bitcoin, while another address dedicated to asset liquidation contains about $276.61 million in BTC.
Impact on the Crypto Market
According to Arkham Intelligence, since July 9, at least 3,100 BTC were transferred to various destinations including 2,500 BTC to an unknown B2C2 Group, 400 BTC to the Kraken exchange, and 200 BTC to an unidentified wallet. On July 8, the government sold an additional $900 million worth of BTC, indicating a steady plan to dispose of their Bitcoin reserves. Despite these substantial sell-offs, the value of the sold BTC has increased to over $930 million, suggesting robust buying interest at these price levels.
Bitcoin Enthusiasts Weigh In
Prominent Bitcoin maximalist Samson Mow has offered an optimistic view, stating that the market is effectively absorbing the large BTC sales. Mow, who serves as CEO of Bitcoin-centric company Jan3, notes that demand for Bitcoin remains strong even in the face of massive liquidations by major players. Earlier this month, Mow highlighted that whales on the Bitfinex exchange were actively buying up Bitcoin despite market downturns. In addition, spot ETFs have continued to accumulate BTC on a regular basis, further supporting his positive outlook.
Is Bitcoin Rebounding?
Despite the German government’s sell-off and Mt. Gox’s creditor repayments, various indicators suggest that Bitcoin may be on the verge of a rebound. After reaching a low of $53,550, BTC has since climbed back to $57,600. Moreover, the Relative Strength Index (RSI) indicates a bullish divergence, where the increase in RSI contrasts with the falling price, hinting at diminishing selling pressure.
Conclusion
The continuation of Bitcoin sales by the German government has undoubtedly placed pressure on the market. However, indicators of strong demand and market absorption, along with signs of a potential rebound, paint a complex yet hopeful picture. Traders and investors should remain vigilant, keeping an eye on both government actions and market responses as these dynamics evolve.
