Bitcoin (BTC) maintained stability around $58,500, despite significant movements of coins on-chain by the German state of Saxony. Earlier attempts to surpass $59,000 during Asian trading hours proved unsuccessful.
Related: Kraken Reports Hackers Resorted to 'Extortion' After Exploiting Bug for $3M
Approximately 15 minutes before this update, the German Federal Criminal Police Office (BKA) transferred 5103.5 BTC, valued at nearly $300 million, to exchanges such as Kraken and Coinbase, as well as market makers like Cumberland and Flow Traders. This move is part of their ongoing strategy to liquidate BTC seized from a privacy website. Since mid-June, Saxony has liquidated 30,997 BTC, causing significant turbulence in the crypto market. Bitcoin prices have dropped over 15% in the past month, hitting a low of $53,550 at one point last week. As of now, the BKA-associated wallet holds 18,860 BTC.
JUST IN: German Government selling up to 5103.5 BTC ($299.85M)
— Arkham (@ArkhamIntel) July 10, 2024
In the past 15 minutes, the German Government has sent 5103.5 BTC ($299.85M) to Kraken, Cumberland, Flow Traders, Coinbase, 139Po (likely institutional deposit/OTC service) and address bc1qu.
Since yesterday’s… pic.twitter.com/HyIbxynbAi
The stable price action indicates that the market is gradually acclimating to these divestments and the potential sales by Mt. Gox creditors.
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Valentin Fournier, an analyst at BRN, commented via email, “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. We continue to expect positive news from Thursday’s U.S. CPI report, but we anticipate that 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 these uncertainties, the overall outlook remains positive, with major economies in an expansionary phase and traditional markets showing peak optimism for technology stocks.
