The German government has also disposed of 3,100 BTC worth $178 million in a short period of time today. The government also withdrew around 1,700 Bitcoins. However, it is likely to sell more. Crypto investors and traders are worried that the selling pressure will further depress the market. However, Bitcoin maximalist Samson Mow believes that demand for BTC remains strong despite the massive sell-off.
German government continues Bitcoin sales
As you have been following on Kriptokoin.com, the German government has been dominating the market with Bitcoin sales in recent days. Accordingly, it has removed another 3,107 BTC from its main assets today. It is also preparing for another sale, which will probably take place soon. The government’s main address currently holds about 26,000 BTC worth $1.5 billion. The address used to dispose of assets currently holds 4,800 BTC worth $276.61 million.
Since 10:30 a.m. ET on July 9, there has been a total outflow of 3,100 BTC, of which 2,500 was sent to an unknown B2C2 Group, 400 BTC to the central exchange Kraken, and the remaining 200 to an unknown wallet. On July 8, the German government sold another $900 million worth of BTC, indicating that it plans to continue selling the remaining $1.5 billion in Bitcoin assets on a steady basis. The same 16,309 BTC sold are now worth over $930 million despite the bulk sale, indicating that buyers are still confident about buying BTC at this price range.
Samson Mow commented on the selling frenzy: The market is sucking!
Samson Mow, former CSO of Adam Back’s Blockstream and now CEO of Jan3, a Bitcoin-focused company, made a bullish statement on Bitcoin and what is happening to all the BTC currently being sold by major market players. Mow believes that demand for Bitcoin remains strong and that the market is currently absorbing all Bitcoin sales. Mow made a similar statement about a week ago and has now confirmed his previous prediction.
Earlier this month, the CEO of Jan3 also posted that he believes cryptocurrency whales on the Bitfinex exchange are buying all Bitcoin dips. Moreover, spot ETFs also continue to absorb BTC several times a week, while also facing massive BTC outflows.
Is BTC preparing for a recovery?
Despite the German government and Mt. Gox’s repayments to creditors, various indicators suggest that BTC is poised to bounce back. BTC hit its lowest level since late February, hitting $53,550 and then rising to $57,600. However, the relative strength index indicator showed an increasing divergence between the decline in price and the increase in the RSI value. Therefore, this suggests that the selling pressure is weakening.
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