Will Bitcoin Withstand the Selling Preassure From Germany’s Government?

Bitcoin (BTC) has faced substantial volatility due to macroeconomic factors and industry events.

The German government’s ongoing sale of seized Bitcoin has significantly impacted market sentiment this month, pushing BTC below $55,000, a level unseen for months amid increasing inflows into spot ETFs.

Germany triggered widespread selling and altcoin movements. As of now, Bitcoin trades at $55,219, down 3% in the last 24 hours.

The sale has sparked debates on social media about its impact alongside institutional investor activities. Critics argue the sell-off pushed prices lower than justified, despite record-high inflows into spot Bitcoin ETFs.

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Skeptics like Peter Schiff doubt institutional inflow narratives, suggesting these firms could have mitigated market impact by buying assets. Justin Sun bid on X to acquire these assets, and ongoing inflows into crypto exchanges keep market sentiment subdued.

The German government retains 23,788 BTC, amounting to $1.336 billion. Criticism against hasty asset sales grows among Bitcoin users, with Joana Cotar advocating retaining assets as reserves.

Bullish sentiment awaits potential Federal Reserve interest rate cuts to boost investor confidence and drive prices higher, aiming for a market cap rebound above $2.5 trillion from its current $2.06 trillion.

Alexander Stefanov