Germany’s government completed the sale of its remaining Bitcoin holdings on July 12, as per data from Arkham Intelligence. The final transaction involved sending 3,846 Bitcoin to “Flow Traders and 139Po,” described by Arkham as a probable institutional deposit or over-the-counter 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 government was 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 the depletion of Germany’s Bitcoin reserves, the market may still face selling pressure due to the $9 billion Mt. Gox reimbursement plan. Analyst Jacob King believes that investors seeking substantial profits may sell up to 99% of the $8.2 billion owed by Mt. Gox. The collapse of the exchange in 2014, when Bitcoin was trading for only a few hundred dollars, caused this liability. On the other hand, IG Markets analyst Tony Sycamore believes that the Mt. Gox payments will not have the disastrous impact on the market that many investors fear. Sycamore argues that there are too many variables at play to accurately predict the behavior of Mt. Gox creditors. He predicts that around half of the reimbursement supply may enter exchanges in July.
Nevertheless, Sycamore is confident that the reimbursement plan has already been factored into the Bitcoin market. He points out that investors have been aware of the plan for a long time, so it doesn’t come as a surprise. Throughout the period of increased selling pressure, institutional investors have taken advantage of the opportunity to buy Bitcoin at lower prices. CoinShares data shows that United States exchange-traded funds received $295 million in inflows during the week of July 8, reversing the previous weeks’ trend of suppressed inflows into these investment funds.