For the past few weeks, Mt. Gox and the German government’s BTC moves have been the key determinants of Bitcoin’s price. According to data from Arkham Intelligence, the German-linked BTC wallet now holds coins worth $1,308,651,208. Six hours ago, the government wallet moved 3.107 BTC worth $179.4 million.
Bitcoin heads into uncharted waters
BTC has struggled to maintain support at $60K for the last two weeks. At the time of this writing, Bitcoin is worth $58,767, which is a 7.6% slump over the last week. Currently, Arkham reports the German government holds 22.846K BTC worth $1.31 billion. This means that Germany has yet to dump a billion worth of BTC in the crypto market.
At the same time, Mt. Gox has been silent after moving BTC three weeks ago. Arkham Intelligence on-chain data shows that Mt. Gox has 138.985K BTC worth $7,956,622,154 as their holdings. Between now and October, both entities will have poured BTC worth over $9 billion into the crypto market.
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When Satoshi Nakamoto created BTC, its value was banked on rarity. That is why Bitcoin mining exists. Historically, after every BTC halving, the currency has always shot to new all-time highs and maintained its price. However, this time, the largest coin has gone against the trend.
This has investors, traders, and institutions worried. According to this week’s Bitfinex Alpha report, on-chain data from July 6 and 7 shows that BTC is headed for another bottom.
The report reads: “Bitcoin prices broke below our 120-day-old range in an albeit expected yet brutal move, recording a low of $53,219, for the first time since February 26th. While this move is in-line with our expectations of a volatility spike in July and market correction, data from July 6th and 7th is showing signs of that a potential local bottom is close.”
Moving forward, any BTC dumbing from both entities stands to have a negative impact on crypto prices.
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Also Read: Bitcoin Rebounds to $57K, Is a New High in Sight?
