Crypto Market Rebounds as Bitcoin Surges Amidst US Holiday and German Transfers
Late Tuesday evening, the crypto market experienced a resurgence, recovering some of the losses incurred during the U.S. 4th of July celebrations.
Bitcoin surged by 5%, reaching a peak of $59,300 before slightly retracing. According to CoinGecko data, the asset is currently trading at $59,000.
Market participants are closely monitoring the potential impacts from the forthcoming sale of Bitcoin from Mt. Gox and the ongoing transfers from the German government to exchanges and market makers.
Liquidations across the market soared to $100 million, a modest figure compared to the $600 million wiped out last week when Bitcoin fell to its lowest point since February, near $54,000.
Meanwhile, U.S. Bitcoin exchange-traded funds have recently acquired $438 million, bringing their total asset value to $49.3 billion.
The total value exchanged in U.S. Bitcoin ETFs on July 5 and July 8, which amounted to $2.18 billion and $1.98 billion respectively, represents the highest trading volumes since June 25.
Despite initial concerns about continued sell pressure from Mt. Gox and Germany, experts interviewed by Decrypt believe these concerns are “overblown.”
On Monday, the German government transferred approximately $900 million worth of Bitcoin. This was followed by an additional $362 million worth of Bitcoin being moved to Kraken and crypto trading desks on Tuesday.
Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital, told Decrypt that the worst of Germany’s selling seems to be “in the rear-view mirror.”
To date, Germany’s government has transferred roughly two-thirds of its seized Bitcoin holdings, with just over $1.6 billion remaining, according to a dashboard by blockchain analytics firm Arkham Intelligence.
Transferring funds to exchanges and market makers doesn’t necessarily mean that Germany’s assets have been sold yet, but it does indicate a probable intention to liquidate them.
Additionally, the bankruptcy estate of the defunct crypto exchange FTX is set to distribute approximately $16 billion in cash to crypto investors around September or October this year, McMillin added.
Since the selling has already occurred, the cash distribution is expected to act as a “significant bullish catalyst” in the coming months, he said.
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