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US Institutional Buying Boosts BTC Amid German Selloff

By Olivier Acuña | TH3FUS3 Chief Editor

July 9, 2024 10:48 AM

Reading time: 1 minute, 36 seconds

TL;DR Bitcoin is holding its ground despite a significant selloff by the German government. Institutional buying in the United States is crucial in maintaining BTC's strength. The intricate market movements add layers of complexity to the ongoing crypto saga.

German Government's Aggressive Bitcoin Selling

The German government continued its aggressive Bitcoin selling spree on Tuesday. It transferred 3100 BTC to Kraken and unknown wallet addresses.

Germany's federal investigative police agency, BKA, has sold hundreds of millions in BTC since June. The selling became more aggressive in July, causing panic in the crypto market.

According to blockchain data from Arkham Intelligence, the Federal Criminal Police Office of Germany (BKA), I transferred 400 BTC to Kraken's crypto exchange on July 9.

The wallet address also moved 2.5k BTC to a B2C2 Group-linked wallet address 139PoP and 200 BTC to bc1qu3. In an hour, the German government dumped Bitcoin worth $177.54 million.

Questions Arise on Massive Selloff

Bitcoin worth $96.88 million moved back into the wallet linked to the German government, raising questions about the government's massive selloff.

The wallet still holds Bitcoin, valued at $1.48 billion. On Monday, CoinGape reported that the German Government (BKA) moved over 5000 BTC to crypto exchanges such as Coinbase, Bitstamp, Kraken, and other wallet addresses, starting with 139PoP and bc1qu3. The government also bagged 3673 BTC after the massive liquidation.

'The transfers by the German government caused outrage in the crypto community as Bitcoin slipped nearly 10% to a low of $53,000.'

Joana Cotar, a German Parliament member, called the government to stop the ongoing Bitcoin selloff and hold it as a reserve asset.

Bitcoin's Strength Amid Selloff

Despite the selloff, Bitcoin continues to gain strength. This is primarily due to buying by spot Bitcoin ETFs. BTC price currently trades more than 2% higher at $57,672. It hit a 24-hour high of $58,131 as Mt. Gox repayment fears subsided and odds of Fed rate cuts in September surged.

Market Dynamics

Derivatives market data shows massive buying as BTC futures open interest across exchanges soared 2.60% in the last 24 hours.

Buying is recorded on CME and Kraken, implying higher US demand. This institutional buying plays a crucial role in maintaining Bitcoin's strength despite the aggressive selloff by the German government.

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