Markets
The impact of Germany’s Bitcoin delisting on the cryptocurrency market
- The German state of Saxony has been selling seized bitcoins in recent weeks, putting pressure on the market
- The bearish sentiment around spot prices has not deterred institutional investors looking to gain exposure to Bitcoin.
Bitcoin [BTC] extended its rally on July 10, surging above $58,000 as cryptocurrency markets displayed a sense of calm.
Always negative Market sentiment has not yet diminishedwith the Cryptocurrency Fear and Greed Index hovering in the “Fear” zone at press time.
Source: Alternative.me
The current “Fear” index highlights the rapid change in market sentiment, as the index hovered in the “Neutral” zone last week and in the “Greed” zone last month.
Massive BTC sale in Germany
The German state of Saxony unloaded more BTC in a series of transactions on July 9. The State Criminal Police Bureau (LKA) confiscated 49,857 BTC from the operator of Movie2k.to in January.
The German police have released the items onto the market in accordance with the guidelines for goods seized in connection with criminal investigations.
To date, the German government has transferred more than half of its initial holdings to exchanges and other market makers.
The wallet belonging to the German Federal Criminal Police Office (BKA) had a balance of 22,847 BTC at press time, according to to Arkham Intelligence data.
Bitcoin funds perform well
Interestingly, recent downward swings in spot prices have not diminished the appeal of Bitcoin funds.
The 11 U.S.-listed Bitcoin ETFs saw a combined $295 million in inflows on July 8, the highest single-day positive net flow volume since June 5, when Bitcoin’s price topped $70,000.
Source: Coinglass
Additionally, none of the ETFs saw any outflows during the day, but three – Valkyrie Bitcoin Fund, Franklin Bitcoin ETF, and WisdomTree Bitcoin Fund – saw no activity.
Although investors exited the Grayscale Bitcoin Trust and Bitwise Bitcoin ETF on July 9, the total net flow remained positive.
These steady ETF inflows amid moderate pricing suggest that institutional investors capitalize on current market volatility accumulate.
Bitcoin ETFs are growing in popularity
Institution-focused crypto investment products are also receiving a warm welcome outside the US and Europe.
In Australia, DigitalX announced the approval of its spot ETF product for an upcoming listing on the Australian Securities Exchange (ASX) on July 8.
The DigitalX Bitcoin ETF will be listed under the ticker BTXX and is expected to begin trading on July 12, the investment firm said in a statement. announcement publication on X.
VanEck’s similar product, the VanEck Bitcoin ETF (VBTC), received regulatory approval on June 15 and became the first spot Bitcoin ETF to trade on the Australian Stock Exchange five days later.
Other potential issuers, including Sydney-based capital markets firm BetaShares, are expected to list their Bitcoin ETF products on Australia’s main stock exchange before the end of the year.
BTC/USDT Technical Analysis
Bitcoin led altcoins in a modest market-wide rally on July 9, hitting an intraday high of $58,239 according to data from CoinMarketCap. Speculators have now turned their attention to resistance levels around $60,000.
Source: TradingView
On the daily chart, the $55,000-$57,500 range has formed a base for BTC/USDT over the past week with a key support level around $56,600, which coincides with previous lows seen in early May.
Read Bitcoin [BTC] Price forecast 2024-2025
By breaking through this range, Bitcoin will be on its way to reclaiming key trendlines lost last week, including the 200-day simple moving average (MA), currently at $58,240.
Source: TradingView
While further upside potential towards $60,000 is still possible, gains from the bullish countertrend will likely be short-lived and fleeting.