• 13 July, 2024
Markets News

Is the Bitcoin Market Resilient? Does It Absorb Large-Scale Sales?

The Bitcoin market is currently experiencing significant activity due to large-scale sales by notable entities such as the German government and the defunct Mt. Gox exchange. Despite these massive transactions, demand for Bitcoin remains robust, reflecting a resilient market. Samson Mow, CEO of Jan3 and former CSO at Blockstream, has reiterated his bullish stance on Bitcoin, noting that the market is effectively absorbing the high volume of Bitcoin sales.

Mow believes that the demand for Bitcoin remains strong and the market is absorbing all the Bitcoin sales at the moment. He tweeted

The market is absorbing all Bitcoin sales nicely. Demand is strong.

German Government Bitcoin Sales

According to recent data, the German government has transferred a substantial amount of Bitcoin to various crypto platforms, including Kraken, Flow Traders, Coinbase, Bitstamp, Cumberland, and B2C2 Group. Specifically, the German authorities moved 9,634 BTC, equivalent to $551 million, in the latest transactions. Since June 19, the total transferred amount has reached 24,304 BTC, worth approximately $1.44 billion. Despite these sales, the German government still holds 28,988 BTC, valued at $1.66 billion.

Source: Lookonchain

Market Absorption and Demand

Samson Mow emphasized that the market’s ability to absorb these large sales indicates strong underlying demand for Bitcoin. He pointed out that cryptocurrency whales, particularly from the Bitfinex exchange, are buying up Bitcoin during dips, which supports market stability. Additionally, spot ETFs are consistently absorbing Bitcoin, further bolstering the market.

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Broader Market Context

Amid these significant transactions, Bitcoin’s price has experienced a notable decline, dropping over 17% to $57,200 within four weeks. However, the overall market outlook remains positive, driven by favorable macroeconomic factors and sustained risk-taking in traditional financial markets. 

The ongoing debate regarding the impact of large Bitcoin sales by the German government and institutional investors continues to shape market sentiment. Despite recent volatility and significant sales by entities like the German government, the Bitcoin market demonstrates resilience with strong demand and positive long-term prospects. 

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