- The price of bitcoin surprised everyone by jumping sharply when the German government sold approximately 48,000 BTC to different investors.
As it marched through$65,000, the price of Bitcoin (BTC) is having a short-term sell-side respite, as per onchain statistics from Glassnode.
The price of Bitcoin has increased by more than 20% during the current recovery, from a low of $56,616 on Friday, July 12, to an intraday high of $65,210 on July 16. Glassnode attributes this increase to the total weariness of German government sell-side pressure. The data comes from Cointelegraph Markets Pro and TradingView.
The market intelligence agency claims that traditionally, the main sources of sell-side pressure have been major companies, such as miners and institutions. The price of Bitcoin dropped to $53,000 recently, mostly because of the German government selling Bitcoin and the anticipated repayments from the now-defunct Japanese cryptocurrency firm Mt. Gox.
The majority of the German government’s selling, according to the Glassnode report, happened after the price of bitcoin had fallen to about $54,000 and had stopped falling. This implies that the selling was already priced in by the market.
Glassnode claims that the recent recovery in Bitcoin markets has also been aided by a prolonged period of inflows into all ETFs.
The 200-day moving average coincided with the sell-off to $54,000 that saw the price of Bitcoin fall below the average inflow cost basis of ETF holders, which is currently at $58,200. According to the research, the ETFs experienced a noteworthy influx of positive interest for the first time since early June, with a total of over $1 billion coming in last week alone.
This is supported by data from CoinShares, which indicates that between July 8 and July 12, inflows into Bitcoin investment products were $1.347 billion, the fifth-largest weekly inflows on record.
In a similar vein, SoSo Value data shows that spot Bitcoin ETFs have experienced net inflows for seven straight times, with over $300 million going into 11 ETFs in the US on July 15.
The German government’s supply of Bitcoin seems to have been offset by strong institutional demand during the past week, which has caused the price of Bitcoin to rise.
The notable drop in exchange flows also played a role in relieving sell-side pressure. Exchange flows, or the amounts placed and taken out of exchanges, are frequently used as a key indicator of investor interest and market liquidity, according to Glassnode.
The graph below demonstrates how exchange flows have decreased dramatically from the peak reached in March, with daily BTC volumes stabilizing at roughly $1.5 billion.
Reduced selling pressure is indicated by declining Bitcoin exchange flows.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
