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Bitcoin Steady at $58.5K as German State Saxony Moves $300M in BTC

Jul 9, 2024
    The wallet associated with the German Federal Criminal Police Office (BKA) moved 5,103.5 BTC during the European hours, according to Arkham Intelligence.BTC held largely steady amid Germany’s continued divestment of coins.
As an analyst with experience in cryptocurrency markets and economic trends, I believe that the recent movements of Bitcoin (BTC) are a result of both Germany’s ongoing divestment of seized coins and potential selling by Mt. Gox creditors. The market seems to be growing more comfortable with these outflows as indicated by strong inflows into spot Bitcoin Exchange Traded Funds (ETFs).Bitcoins value hovers around $58,500, unchanged despite Saxony, a German state, transferring more coins on the blockchain. It couldn’t maintain upward momentum above $59,000 during the Asian trading session.

Currently, the first cryptocurrency in terms of market capitalization was priced at $58,470 during our report’s compilation, representing a 1.6% decrease from its peak value of $59,450, attained at 1:06 UTC, based on CoinDesk’s monitored data.

Per Arkham Intelligence, roughly 15 minutes before press time, the German Federal Criminal Police Office (BKA) moved 5103.5 BTC worth nearly $300 million, to exchanges Kraken and Coinbase and market makers like Cumberland and Flow Traders, continuing its proactive approach of liquidating BTC seized from a privacy website.

As a researcher, I’ve come across an intriguing piece of news from CoinDesk published on Tuesday. According to their report, the German state of Saxony has been transferring bitcoin recently following established procedures.

I’ve been following the developments in the crypto market closely, and I came across an interesting revelation. The state started offloading its Bitcoins (BTC) around mid-June, resulting in a sale of 30,997 coins thus far. This mass sell-off has caused quite a stir in the digital currency realm. Over the past month, BTC prices have plummeted by over 15%, reaching as low as $53,550 during the last week. At present, I observe that the wallet linked to the BKA still holds approximately 18,860 BTC.

Based on the consistent trend in pricing, it appears that the market is gradually growing accustomed to the divestment and possible sell-offs by Mt. Gox creditors.

In an email, Valentin Fournier, BRN’s analyst, expressed his perspective: The market appears to be growing less apprehensive towards the outflows from Mt. Gox and the German government. Notably, there has been a surge in investments into Bitcoin spot ETFs recently, suggesting a potential shift in trend. This notion is reinforced by the Relative Strength Index (RSI), which indicates that the oversold level we previously identified was seized upon by investors as a buying opportunity.

Expecting favorable news from Thursday’s U.S. CPI report, but the Fed is likely to postpone rate reductions until September. Hawkish remarks following a robust PCE reading on June 28 could cause markets to react as if inflation isn’t waning. As such, consider booking profits before the week’s close, which may be volatile.

Despite some current uncertainties, the overall perspective stays favorable as key economies experience growth phases and tech stocks continue to enjoy heightened investor enthusiasm in established markets.

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2024-07-10 13:43