The German government has almost sold all of its Bitcoin holdings. According to Arkham Intelligence, the government recently transferred 5,000 BTC to exchanges, leaving only 4,925 BTC in its wallet.
This is less than 10% of the original 50,000 BTC seized from Movie2k. Despite this significant sell-off, Bitcoin prices have not plunged into a bear market.
Impact of Mt. Gox Creditor Sales
Another potential market pressure comes from Mt. Gox creditors, who are starting to receive their Bitcoin. While this could impact Bitcoin prices, it’s uncertain how much will be sold by these long-term holders, or Bitcoin OGs.
CPI Data and Market Reactions
Thursday brought some positive news for Bitcoin. The Consumer Price Index (CPI) data was better than expected, increasing the likelihood of a rate cut in September. However, markets still declined, with the Nasdaq dropping 2%.
Chances of a Bitcoin Rally
The big question remains: Will there be a Bitcoin rally? After a 27% price reversal, Bitcoin aligns more closely with previous bull market corrections. The weekly stochastic RSI is at the bottom, hinting at a possible upward movement. Monday’s market opening will be crucial to see if this crossover occurs, potentially igniting strong price momentum.
Even if the Bitcoin price remains low for a while, the anticipated rally seems imminent. Patience may be required as the market finds its footing.
