Key takeaways:
- Based on data from Arkham Intelligence, Germany’s government sold out the last of its Bitcoin holdings on July 12.
- Sycamore claims that it is impossible to predict how the creditors of Mt. Gox will behave since there are too many variables involved.
Based on data from Arkham Intelligence, Germany’s government sold out the last of its Bitcoin holdings on July 12.
Arkham characterized the final transaction as “likely institutional deposit/OTC service,” with 3,846 Bitcoin going to “Flow Traders and 139Po.” After the German government put more pressure on sellers for weeks, offloading thousands of Bitcoin in multiple tranches, the transaction took place.
The market has been kept below its 200-day exponential moving average and the $60,000 price point by the majority of the 50,000 Bitcoin that the German government dumped during the last three weeks as a result of an asset seizure.
The selling pressure from the $9 billion Mt. Gox compensation plan may keep the price of Bitcoin low in the upcoming weeks and maintain the atmosphere of fear, uncertainty, and doubt that has afflicted the market in recent months, even though the German government has depleted its stockpiles of Bitcoin.
When Bitcoin was still selling for hundreds of dollars in 2014, the exchange failed. According to Tony Sycamore, an analyst at IG Markets, the Mt. Gox payments won’t have the catastrophic impact on markets that many investors fear.
Sycamore claims that it is impossible to predict how the creditors of Mt. Gox will behave since there are too many variables involved. According to the expert, exchanges could receive half of the refund supply by the end of July.
Nevertheless, the expert was certain that the reimbursement had already been factored into the price of Bitcoin. According to Sycamore, investors have long been aware of the repayment scheme and are not at all surprised by it.
Institutional investors purchased the decline when selling pressure was at its highest. United States Exchange Traded Funds (ETFs) had $295 million in inflows for the week of July 8, according to data from CoinShares. This reversed several weeks of depressed inflows into the investment vehicles.
