German Government Sells Off Last of Bitcoin Holdings, Institutional Selling Pressure Continues
The German government has officially sold off its remaining Bitcoin holdings, marking the end of weeks of increased selling pressure on the market. According to data from Arkham Intelligence, the final transaction included 3,846 Bitcoin sent to an institutional deposit/OTC service. This move follows the offloading of tens of thousands of Bitcoin in several tranches over the past three weeks, most of which resulted from an asset seizure.
The selling pressure from the German government, along with the looming $9 billion Mt. Gox reimbursement plan, has kept the price of Bitcoin below the $60,000 mark and its 200-day exponential moving average. Analysts are divided on the potential impact of the Mt. Gox payments, with some predicting that investors could sell up to 99% of the $8.2 billion reimbursement supply.
Despite the uncertainty surrounding the Mt. Gox payments, institutional investors have been buying the dip. CoinShares data shows that U.S. exchange-traded funds saw $295 million in inflows for the week of July 8, reversing a trend of suppressed inflows into investment funds.
While the market remains uncertain, some analysts believe that the Mt. Gox reimbursement plan is already priced into the market and may not have as drastic of an effect as anticipated. With institutional investors stepping in to buy the dip, the future of Bitcoin remains uncertain but potentially promising.
