Germany’s government sold the last of its Bitcoin holdings on July 12, according to data from Arkham Intelligence.
The final transaction included 3,846 Bitcoin, sent to “Flow Traders and 139Po.” Arkham described this as a likely institutional deposit or over-the-counter service. This sale followed weeks of increased selling pressure from the German government, which had offloaded tens of thousands of Bitcoin in several batches.
Impact on Bitcoin Market
Most of the 50,000 Bitcoin sold by the German government over the past three weeks were seized assets. These sales kept the market below the $60,000 price point and its 200-day exponential moving average.
Despite Germany’s Bitcoin reserves being exhausted, selling pressure from the $9 billion Mt. Gox reimbursement plan may keep Bitcoin prices low in the coming weeks. This situation may continue the climate of fear, uncertainty, and doubt that has affected the market in recent months.
The Mt. Gox exchange collapsed in 2014 when Bitcoin was trading for hundreds of dollars. IG Markets analyst Tony Sycamore believes Mt. Gox payments will not have the disastrous effect on markets that many investors fear. Sycamore pointed out that many factors will influence the behavior of Mt. Gox creditors. He predicted that half of the reimbursement supply could hit exchanges sometime this July.
Institutional Investors Buy the Dip
During this period of heightened selling pressure, institutional investors took advantage of lower prices. Data from CoinShares revealed that United States exchange-traded funds (ETFs) saw $295 million in inflows for the week of July 8. This reversed several weeks of low inflows into these investment funds.
Sycamore told Cointelegraph that the reimbursement plan was known by investors for a long time and was already priced into the Bitcoin market.
