Bitcoin (BTC) rose by 4.5% from June 28 to July 1, breaking the $63,000 resistance for the first time in a week. The prior decline was largely due to fears stirred by the German government’s BTC transactions with exchanges and worries about Mt. Gox creditors selling large amounts of Bitcoin during the bankruptcy proceedings. However, this bearish trend was reversed by three key factors, including the entry of a possible new major investor into the market.
Bitcoin/USD 12-hour price index. Source: TradingView
Bitcoin FUD cedes after a Michael Dell post and spot ETF inflows
On July 1, the German government moved 1,500 BTC, valued at $95 million, to various cryptocurrency exchanges, as reported by the onchain analytics firm Arkham Intelligence. On a similar note, the United States government transferred 1,184 BTC on June 30 from a wallet linked to previously confiscated funds. As of now, the German government possesses Bitcoin assets worth $2.8 billion, primarily acquired from a defunct movie piracy site closed in 2013.
These transactions fueled speculation that the selling pressure might persist, as the U.S. government’s wallet also holds Bitcoin valued at $13.4 billion, according to data from Arkham Intelligence. The most significant recent transaction by the U.S. government occurred on June 26, when it sent 3,940 BTC, worth $214 million at that time, to a Coinbase Prime account. These funds were confiscated from Banmeet Singh, a convicted drug trafficker, earlier in 2024.
Despite these government sales exceeding $300 million, Bitcoin’s price demonstrated resilience. This resilience was bolstered as the spot Bitcoin exchange-traded funds (ETFs) absorbed part of the offer, adding a net $137 million in just four trading days from June 25 to June 28. Moreover, the growing instability in traditional markets and the entrance of significant new players into the Bitcoin ecosystem have strengthened investor confidence.
Billionaire Michael Dell, founder and CEO of Dell Technologies, sparked excitement on June 21 with a suggestive message about a possible Bitcoin investment. Dell, listed by Forbes as one of the 20…
..
