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- The German government has now lost its Bitcoin’s billionaire status after more than three weeks of sustained sell-offs.
- The rising Bitcoin demand as shown by the notable cash inflows to US Spot BTC ETFs has bolstered the ongoing crypto recovery.
The German government continued with its Bitcoin (BTC) selloffs on Thursday. The government sent its stash to different exchanges and addresses associated with OTC desks. After depositing hundreds of Bitcoins to Kraken, Bitstamp, Coinbase, and Cumberland among others in the past few days, the German government currently holds 9.92k Bitcoins, worth about $577 million.
🚨 Breaking News: Germany's Government Starts Selling #Bitcoin 🇩🇪
In a surprising move, Germany has begun offloading its Bitcoin holdings, sending shockwaves through the crypto community. 💰💸
On July 10th, the government transferred a staggering amount of BTC to various… pic.twitter.com/7WS02R49Vw
— Collin Brown (@CollinBrownXRP) July 10, 2024
As a result, the German government has lost its billionaire status in terms of Bitcoin holdings, thus dramatically reducing its overall selling pressure in the crypto industry. As we previously pointed out, some German lawmakers have criticized the continued Bitcoin sell-offs.
Impact on the Crypto Industry from Germany’s Bitcoin Sales
The ongoing Bitcoin sell-offs by the German government have coincided with the distribution of the Mt.Gox repayments of about $9 billion. The notable BTC sell-offs by the German government have weighed heavily on the mid-term bullish outlook.
According to the latest crypto oracles, the total crypto market cap has slipped from nearly $2.8 trillion last month to around $2.26 trillion at the time of writing. The fear and greed index, which currently hovers around 28, suggests heightened fear of further capitulation ahead.
However, as we previously reported, Bitcoin holders could significantly benefit from the potential collapse of the US dollar among other global fiat currencies. Moreover, more institutional investors have accumulated over $600 worth of Bitcoins since last week Friday through the US-based spot BTC ETFs.
While the German government could be vacating the Bitcoin arena, El Salvador through its Bitcoin plan has continued to accumulate more coins daily. Additionally, on-chain data shows that more Bitcoin whales have increased their holdings in the recent past.
Widening Deviation
Bitcoin price has gradually been losing the bullish momentum in the past four months. Although the flagship has been forming a possible bullish flag, the correlation between Bitcoin price action and the major stock indexes, led by the S&P 500 has significantly declined in the past month.
The correlation between Bitcoin price action and major global stock indexes has surged in the past years fueled by the heightened adoption by institutional investors. Additionally, the notable crypto regulatory frameworks, led by the Markets in Crypto-Assets (MiCA) in Europe, have significantly synchronized the crypto and stock markets amid the ongoing tokenization of real-world assets.
Is BTC Price Ready for Lift-Off?
As we recently explained, BTC is at a major crossroads that could either lead to a continued rally toward a new all-time high or further capitulation toward $50k. The flagship coin has already slipped more than 12 percent in the past four weeks to hover around $58.6k on Thursday, July 11, 2024.
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From a technical standpoint, Bitcoin price must reclaim the 200-day Moving Average (MA) as a support level to invalidate further capitulation ahead. Furthermore, BTC has been forming a possible double top couple with the bearish divergence on the weekly Relative Strength Index (RSI).
