With the recent release of June US CPI data, expectations for a bullish trend in the crypto market briefly improved. However, as supply pressure increased, Bitcoin’s recovery rate is slower than expected. The main supply force comes from the German government, which is depleting Bitcoin reserves and delaying the $60,000 breakout. More broadly, while the market expects a rebound next week, Bitcoin’s price remains below $60,000 for now.
What’s Happening on the Bitcoin Front?
On July 11, 2024, despite Bitcoin ETF funds volume falling below $100 million, there was a net inflow of $79 million, marking the fifth consecutive positive inflow day. Among major players, BlackRock’s IBIT ETF fund led with a significant inflow of $72.1 million, followed by Fidelity’s FBTC ETF fund with an inflow of $32.7 million.
In contrast, Grayscale’s GBTC ETF fund saw a significant outflow of $37.7 million, 4.6 times the outflow recorded the previous day. These data indicate that while some investors are withdrawing, others continue to enter Bitcoin ETF funds. The German government unexpectedly reduced its Bitcoin reserves significantly and now holds only 9,094 Bitcoins worth approximately $521 million. This follows the sale of 6,458 Bitcoins worth about $379 million in the last 24 hours.
This significant sale is linked to authorities seizing 50,000 Bitcoins worth $2.1 billion from operators of the central pirate movie platform Movie2k, known for distributing over 880,000 pirated movie copies since its establishment in 2008. If this selling pace continues, the German government is expected to deplete its Bitcoin holdings within the next two days. Since June 19, 2024, German authorities’ Bitcoin holdings have dropped from 49,000 Bitcoins to 9,100 Bitcoins as of July 11, 2024, following consistent sales that began on July 7, 2024.
Bitcoin Chart Analysis
The declining Bitcoin price is below the daily EMA 200 average and faces higher price rejection. Despite recently rising to the $59,500 level, Bitcoin failed to overcome the short-term resistance trend line.
If the daily close fails above the EMA 200 average, it may continue to test the negative cycle support trend line. Currently, Bitcoin is trading at $57,329, and an intraday Doji bar can be seen during Asian market hours.
