The German government continued to sell its Bitcoin holdings, transferring around 3,100 BTC worth approximately $178 million in just one hour on July 9. At the same time, it withdrew about 1,700 BTC worth around $91.78 million from Bitstamp, consolidating its Bitcoin assets from the exchange.
The government has moved another 3,107 BTC out of its main holdings, indicating an imminent further sell-off. Currently, the main government address holds about 26,000 BTC valued at $1.5 billion, while the off-load address holds 4,800 BTC worth $276.61 million.
BTC Distribution Details
Since 7:30 am UTC on July 9, a total of 3,100 BTC has been transferred. Of these, 2,500 BTC went to an unknown B2C2 Group, 400 BTC to the centralized exchange Kraken, and the remaining 200 BTC to an unknown wallet.
On July 8, the German government sold an additional $900 million worth of BTC, indicating plans to continue selling its remaining $1.5 billion in Bitcoin. Despite the sell-off, the 16,309 BTC sold is now valued at over $930 million, showing buyer confidence in the current price range.
Economic Factors and Market Impact
Wall Street traders predict a 72% chance of the US Federal Reserve cutting interest rates in September. Lower interest rates could boost investment in Bitcoin, as it remains a risk-on asset, unlike gold, which attracts liquidity during geopolitical instability.
The recent reduction in BTC miner activity and reserve sell-offs suggests market sentiment might be reaching a bottom. Bitfinex analysts noted a local bottom on July 6 and 7, despite Mt. Gox beginning BTC and Bitcoin Cash repayments.
BTC Price Outlook
Despite the sell-offs by the German government and Mt. Gox repayments to creditors, several indicators suggest Bitcoin is ready to rebound. BTC reached its lowest point since late February, hitting $53,550 before rising to current highs of $57,600. The relative strength index (RSI) indicates weakening sell pressure, with a growing divergence between the falling price and rising RSI value.
