Markets
How the Bitcoin Sale in Germany is Impacting the Cryptocurrency Market
- In recent weeks, the German state of Saxony has been selling seized Bitcoin, putting pressure on the market
- Bearish sentiment in spot prices has not deterred institutional investors interested in exposure to Bitcoin.
Bitcoin [BTC] extended its recovery on July 10, sharply rising above $58,000 as cryptocurrency markets showed a sense of calm.
Still negative Market sentiment has not yet subsidedwith the Fear & Greed crypto index hovering in the “Fear” zone at press time.
Source: Alternative.me
The current “Fear” index highlights the rapid change in market sentiment, as last week the index was in the “Neutral” zone and last month in the “Greed” zone.
BTC Sale in Germany
The German state of Saxony downloaded more BTC in a series of transactions on July 9. The State Criminal Police Office (LKA) confiscated 49,857 BTC from the operator of Movie2k.to in January.
German police released these coins to the market in accordance with guidelines for assets seized in criminal investigations.
To date, the German government has transferred more than half of its initial holdings to exchanges and other market makers.
The wallet belonging to the German Federal Criminal Police Office (BKA) had a balance of 22,847 BTC at press time, second to Arkham intelligence data.
Bitcoin Funds Perform Strongly
Interestingly, recent downward swings in spot prices have not reduced the attractiveness of Bitcoin funds.
The 11 U.S.-listed spot Bitcoin ETFs saw a combined $295 million in inflows on July 8, the highest daily net positive flow volume since June 5, when Bitcoin’s price surpassed $70,000.
Source: Coinglass
Additionally, none of the ETFs saw any outflows on the day, but three (Valkyrie Bitcoin Fund, Franklin Bitcoin ETF, and WisdomTree Bitcoin Fund) saw no activity at all.
Despite investors withdrawing from Grayscale Bitcoin Trust and Bitwise Bitcoin ETF on July 9, total net inflows still remained positive.
These steady inflows into ETFs in an environment of low prices suggest that institutional investors are capitalizing on the current market volatility accumulate.
Bitcoin ETFs Are Seeping Increasing Popularity
Even outside the United States and Europe, cryptocurrency investment products aimed at institutional investors are enjoying positive reception.
In Australia, DigitalX announced the approval of its spot ETF product for imminent listing on the Australian Securities Exchange (ASX) on July 8.
The DigitalX Bitcoin ETF will be listed under the ticker BTXX and is expected to begin trading on July 12, the investment firm said in a statement. announcement post on X.
A similar product from VanEck, the VanEck Bitcoin ETF (VBTC), received regulatory approval on June 15 and became the first spot Bitcoin ETF to trade on the Australian Securities Exchange five days later.
Other potential issuers, including Sydney-based venture capital firm BetaShares, are expected to list their Bitcoin ETF products on Australia’s main stock exchange before the end of the year.
BTC/USDT Technical Analysis
Bitcoin led altcoins in a modest market recovery on July 9, claiming an intraday high of $58,239, according to CoinMarketCap data. Speculators have now shifted their attention to resistance levels around $60,000.
Source: TradingView
On the daily chart, the range between $55,000 and $57,500 has, over the past week, formed a base for BTC/USDT with a key support level around $56,600, which coincides with the previous lows seen in early May.
Light Bitcoin [BTC] Price forecast 2024-2025
Breaking out of this range will position Bitcoin on the path to reclaim the major trend lines it lost last week, including the 200-day simple moving average (MA), currently at $58,240.
Source: TradingView
While there is still potential for further upside towards $60,000, gains from the bullish countertrend will likely be short-term and fleeting.