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Bitcoin Holds Firm at $58.5K while German State Saxony Transfers $300M in BTC

During European trading hours, the wallet linked to the German Federal Criminal Police Office (BKA) made a transfer of 5,103.5 BTC, as reported by Arkham Intelligence. Bitcoin (BTC) maintained relative stability while Germany’s state of Saxony continued its movement of coins on-chain, failing to sustain levels above $59,000 during Asian trading.

At the time of reporting, the primary cryptocurrency by market capitalization was trading at $58,470, showing a 1.6% decline from its peak of $59,450 recorded at 1:06 UTC, according to data compiled by CoinDesk.

According to Arkham Intelligence, just about 15 minutes before the report, the BKA transferred 5,103.5 BTC valued at almost $300 million to platforms such as Kraken and Coinbase, as well as market makers like Cumberland and Flow Traders. This action aligns with their ongoing strategy of converting seized BTC from a privacy website into liquid assets.

In a recent update, CoinDesk highlighted that the state of Saxony in Germany has been actively moving bitcoin over the past few weeks following established protocols. Saxony initiated its BTC sales in late June, offloading a total of 30,997 BTC, causing turbulence in the crypto market. BTC prices have experienced a decline exceeding 15% over the last month, dropping to a low of $53,550 at one juncture. As of the latest data, the BKA-affiliated wallet holds 18,860 BTC.

The consistent price behavior indicates a growing acceptance within the market towards the divestment process and potential sales by Mt. Gox creditors.

An analyst at BRN, Valentin Fournier, noted, “The market appears to be increasingly at ease with the outflows from Mt. Gox and the German government. Spot Bitcoin ETFs are once again witnessing substantial inflows, signaling a potential reversal in trends. This sentiment is reinforced by the RSI, indicating that the previously oversold level identified a few days ago was viewed as an opportunity by investors.”

Fournier further added, “We anticipate positive developments from [Thursday’s U.S.] CPI, but we predict that the Fed will postpone rate adjustments until September. Any hawkish statements, akin to those following the robust PCE on June 28, could prompt a reaction in the market, suggesting that inflation is not on a downward trajectory. Hence, we advise capturing profits in anticipation of a possibly turbulent end to the week.”

Despite recent events, the overall market outlook remains optimistic, with major economies in an expansionary phase of the business cycle and conventional markets displaying peak enthusiasm for tech stocks.