German State Liquidates over $637MM of BTC

Bitcoin (BTC) remains steady around $58,500 amid significant movement of coins by the German state of Saxony. Despite attempts, BTC failed to maintain gains above $59,000 during the Asian trading hours. At the time of reporting, BTC traded at $58,470, a 1.6% decrease from the high of $59,450 reached at 1:06 UTC.. Recent data from Arkham Intelligence indicates that the German Federal Criminal Police Office (BKA) has transferred over 10,853 BTC, valued at $637 million, to exchanges like Kraken and Coinbase, as well as market makers such as Cumberland and Flow Traders.

The German state began the liquidation of BTC in the second half of June. Since then, 30,997 BTC have been sold, impacting the crypto market significantly. Over the past four weeks, BTC has dropped more than 15%, hitting a low of $53,550 at one point last week. As of now, the wallet associated with the BKA holds 13,360 BTC, worth approximately $784.96 million.

The steady price action indicates that the market is gradually adjusting to the divestment and the potential selling pressure from Mt. Gox creditors. Valentin Fournier, an analyst at BRN, commented, “The market seems to be growing more comfortable with the outflows from Mt. Gox and the German government. The spot Bitcoin ETFs are now seeing strong inflows again, indicating signs of a trend reversal. This is further supported by the RSI, which shows that the undersold level we highlighted a few days ago was seen as an opportunity by investors.”

Fournier also noted, “We continue to expect positive news from Thursday’s U.S. CPI, but we anticipate the Fed will delay rate cuts until September. Possible hawkish comments, as seen after the strong PCE on June 28, could lead the market to react as if inflation is not decreasing. Therefore, we recommend taking profits ahead of a potentially shaky end to the week.” Despite recent turbulence, the broader outlook remains optimistic, with major economies in an expansionary phase and traditional markets showing peak optimism for technology stocks.

At present, BTC stands at $58,470, with a recent high of $59,450. Since June, Germany has liquidated 30,997 BTC, and the BKA wallet still holds 13,360 BTC. Market sentiment is adjusting to large sell-offs, showing positive trend indicators.