German Bitcoin Sales Impact Wanes, What’s Next?
The impact of Bitcoin sales by the German government has plummeted over time as the asset makes a recovery. Authorities moved over 25,000 BTC to exchanges in the past few days causing a major price shift. However, the 24-hour market activity of the wallet did not have a similar effect as bulls began to pick up momentum.
The weekly market decline is not solely linked to German inflow to exchanges. A slight change in sentiments was recorded following news of Mt Gox creditor’s repayment. These factors coupled with other macro and industry developments plunged Bitcoin price below $55,000 before making a rebound.
A Waning Effect on Bitcoin Price
Data from blockchain analytics firm, Arkham Intelligence shows the German government holds about 16,000 BTC worth approximately $823 million. This brings the total value of holdings under $1 billion after days of massive sales. At press time, Bitcoin price trades at $67,654, a 0.2% growth in the last 24 hours while weekly sales are 5% deep in the red zone.
Monthly figures are down 17% alongside similar movements from other crypto assets. A look at the charts points to improved dynamics in the 48 hours. Despite sales, the price marks gains as opposed to the correction of the decline where the asset’s price touched lows not seen in months.
Today, the government made transfers to centralized exchanges becoming one of the highest sales. The slight change in Bitcoin sentiment trickled to altcoins as meme coins.
Positive Macro Factor BTC
The recent US Job data shifted the tide in favor of the market with several commentators projecting imminent rate cuts. Analysts pitch two interest cuts with the first as early as September igniting a bullish drive in the market. Interest rate cuts will spur the movement of funds to risky assets. Other factors set to aid the market recovery are institutional inflows to spot Bitcoin ETFs and incoming Ethereum products.
Also Read: How CFTC Illinois Case Strengthens Calls For Crypto as Commodities
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