Germany continues to stir the crypto market with ongoing selling pressure, which remains strong even today. The German government’s activities have been shaking the prices of major cryptocurrencies, with mixed news of transfers between exchanges and the government, ultimately leading to selling pressure.
In this environment, where many retail investors are panicking, there is usually a wave of large investors prepared to buy in hopes of securing lower prices and expanding their portfolios. Fortunately, a counter-narrative with increasing buying volume has started to emerge, with some parties beginning to purchase Bitcoin as its price drops.
Selling Pressure from Germany
Currently, the latest recorded selling pressure from Germany involves approximately 20 Bitcoins, which have contributed to a negative narrative, driving Bitcoin’s price down from around $70,000 to about $55,000.
This movement is triggered by the German government’s attempt to liquidate Bitcoin obtained through various illegal activities, much like other governments worldwide.
Unfortunately, this sale was conducted with significant publicity, resulting in negative sentiment and widespread concern.
Ideally, the German government could have avoided this scenario by selling gradually and without fanfare, thereby maintaining market balance and avoiding widespread retail panic.
However, this selling pressure coincides with other negative news, such as Mt. Gox releasing compensation funds to its clients.
As of now, data from Arkham Intelligence indicates that the German government, through its recorded wallet, still holds approximately 27.4 Bitcoins that are likely to be sold.
This transaction uncertainty creates market volatility and overall retail investor anxiety, culminating in additional selling pressure.
Who is Buying During the Price Correction?
Amidst this negative atmosphere, market cycles continue to repeat, where retail panic sells, and large investors buy at lower prices to restore price stability. A prime example is Metaplanet, a major Japanese company with substantial Bitcoin holdings.
📢 Metaplanet Inc. Update: Bitcoin Purchase Disclosure
As of June 24, 2024, Metaplanet purchased an additional 400 million yen worth of Bitcoin.
42.466 BTC at an average price of 9,419,300 yen/BTC ( $58,490/BTC )
Total Holdings: 203.734 BTC
🔹 Average price: 10,062,517 yen/BTC… pic.twitter.com/0eAn9EvOJs— Crypto Patel (@CryptoPatel) July 8, 2024
This company is often compared to MicroStrategy in Asia due to its significant Bitcoin reserves and its support for Bitcoin’s growth by consistently buying during price drops.
Recently, Metaplanet purchased around 42 Bitcoins during a price correction, acting as a safety net for panicking retail investors. This activity aligns with their typical pattern of large Bitcoin acquisitions.
What makes this transaction noteworthy is the considerable volume, signalling their ongoing support for Bitcoin despite its falling price.
Simultaneously, other large investors and major companies are also seen buying, according to data from Lookonchain and Arkham Intelligence, collectively striving to recover the market’s movement.
Lookonchain reports that institutional investors have been purchasing Bitcoin as its price declines. In the last 24 hours alone, there has been a purchase of 2,394 Bitcoins through a Bitcoin Spot ETF.
This data is complemented by the fact that over the past seven days, particularly since the market correction began, institutional investors have bought 4,532 Bitcoins. This behaviour underscores that the German selling pressure is merely a temporary negative narrative.
Large investors typically exploit such narratives to secure lower prices, making significant purchases for greater long-term gains as the market price rises.
Conclusion
This situation serves as a reminder that despite occasional market corrections, Bitcoin’s price tends to rise in the long term, supported by institutional investors. These investors would not be buying if they were not confident in Bitcoin’s long-term potential.
Therefore, smaller retail investors should follow the money and transaction trends of institutional investors rather than taking opposing positions.
