Key Points
- Germany’s Saxony state has been selling off seized Bitcoin, putting pressure on the market.
- Despite negative market sentiment, institutional investors continue to seek exposure to Bitcoin.
Germany’s Saxony state has been offloading Bitcoin that was confiscated in recent weeks. This has exerted pressure on the market.
Despite a bearish sentiment surrounding spot prices, institutional investors are still seeking exposure to Bitcoin.
Bitcoin’s Market Performance
On July 10th, Bitcoin experienced a significant rebound, rising sharply above $58,000. This occurred as the crypto markets showed signs of calm.
However, negative market sentiment has not completely subsided. The crypto Fear & Greed Index is currently in the ‘Fear’ zone. This indicates a rapid shift in market sentiment, as the index was in the ‘Neutral’ zone just last week and in the ‘Greed’ zone last month.
Germany’s Bitcoin Selloff
On July 9th, Germany’s Saxony state offloaded more BTC in a series of transactions. This followed the state’s Criminal Police Office (LKA) confiscating 49,857 BTC from the operator of Movie2k.to in January.
The German police authority has been releasing these coins into the market in line with guidelines for assets seized in criminal investigations. So far, the German government has transferred more than half of its initial holdings to exchanges and other market makers.
Bitcoin Funds Remain Strong
Despite recent spot price swings to the downside, the appeal of Bitcoin funds has not diminished. The 11 US-listed spot Bitcoin ETFs collectively registered $295 million in inflows on July 8th. This is the highest single-day positive net flow volume since June 5th, when the Bitcoin price trended above $70,000.
Furthermore, none of the ETFs recorded outflows on the day, although three – Valkyrie Bitcoin Fund, Franklin Bitcoin ETF, and WisdomTree Bitcoin Fund – saw no activity.
Despite investors withdrawing from the Grayscale Bitcoin Trust and Bitwise Bitcoin ETF on July 9th, the total net flow remained positive. This suggests that institutional investors are capitalizing on the current market volatility to accumulate.
Growing Popularity of Bitcoin ETFs
Institutional-focused crypto investment products are also gaining traction 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 8th.
The DigitalX Bitcoin ETF will be listed under the ticker BTXX and is expected to begin trading on July 12th. VanEck’s similar product, the VanEck Bitcoin ETF (VBTC), received regulatory approval on June 15th and became the first spot Bitcoin ETF to trade on the Australian Securities Exchange five days later.
More prospective issuers, including Sydney-based capital market company BetaShares, are expected to list their Bitcoin ETF products on Australia’s primary securities exchange before the end of the year.
Bitcoin’s Technical Analysis
Bitcoin led altcoins in a modest market-wide recovery on July 9th, reaching an intraday high of $58,239. Speculators have now shifted their attention to resistance levels around $60K.
On the daily chart, the $55,000 – $57,500 range has, in the last week, formed a base for BTC/USDT with a key support level around $56,600. This coincides with previous lows observed at the start of May. Clearing this range will position Bitcoin on the path to reclaiming key trendlines lost last week, including the 200-day simple moving average (MA), currently at $58,240.
