Germany’s government completed the sale of its remaining Bitcoin holdings on July 12, as confirmed by data from Arkham Intelligence. The final transaction involved sending 3,846 Bitcoin (BTC) to “Flow Traders and 139Po,” which Arkham referred to as a “probable institutional deposit/OTC service.” Over the past few weeks, the German government has been steadily selling off tens of thousands of Bitcoin, resulting in increased selling pressure. The majority of the 50,000 Bitcoin sold by the German government in the last three weeks were seized assets, which played a significant role in keeping the market below the $60,000 price point and its 200-day exponential moving average.
Despite Germany depleting its Bitcoin reserves, the market may continue to face selling pressure due to the $9 billion Mt. Gox reimbursement plan. Analyst Jacob King believes that investors could sell up to 99% of Mt. Gox’s $8.2 billion, potentially impacting the market. However, IG Markets analyst Tony Sycamore disagrees, stating that there are too many variables to determine the behavior of Mt. Gox creditors. Sycamore predicts that around half of the reimbursement supply may enter exchanges in July. Nevertheless, he believes that the market has already factored in the news of the reimbursement plan, as it has been known by investors for a while.
Amidst the selling pressure, institutional investors have taken advantage of the market dip. CoinShares data reveals that United States exchange-traded funds (ETFs) experienced $295 million in inflows during the week of July 8, reversing the previous weeks’ trend of suppressed inflows into these investment funds.