Bitcoin‘s value experienced a notable increase today, deviating slightly from its usual weekend behavior. Historically, Bitcoin has traded negatively on weekends due to Wall Street’s closure. Adding to this market activity, the German government finalized the sale of 50,000 seized Bitcoins, with Arkham Intelligence confirming the last sale occurred last night.
Why Did Bitcoin Prices Rise?
In the past 24 hours, Bitcoin saw a surge of over 3%, with Spot ETF funds enjoying seven continuous days of inflows. Bitcoin’s market cap reached $1.16 trillion, capturing a 50.67% market share. According to CoinGecko, the overall crypto market soared to $2.28 trillion, marking a 2.91% increase. Stablecoin projects also posted a market value of $163 billion, making up 7.12% of the total crypto market.
Ethereum, the second-largest cryptocurrency, maintained its stability above $3,000. It is currently priced at $3,166, reflecting a 0.8% increase within the last hour and a 3.7% increase over the past day. The broader market is seeing an upward trend, with several cryptocurrencies achieving double-digit percentage gains.
What Are the Market Dynamics?
On July 12, 2024, Germany completed its Bitcoin asset liquidation. The final sale involved transferring 3,846 Bitcoins to Flow Traders and 139Po, which are categorized as institutional deposits and OTC services. This transaction marked the culmination of weeks of Bitcoin sales by the German government, which had been selling its holdings for the past three weeks.
These sales activities kept Bitcoin’s price below $60,000 and under the 200-day exponential moving average. However, the upcoming $9 billion Mt. Gox repayment plan could introduce new selling pressures. Despite these uncertainties, institutional investors have viewed this period as a buying opportunity, even as the crypto Fear and Greed Index remains at extreme fear levels.
Key Market Takeaways
– Over $310 million flowed into U.S. spot Bitcoin ETFs on July 12, the highest since June 5.
– BlackRock’s iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund attracted $120 million and $115.1 million, respectively.
– Ethereum’s price stability above $3,000 could signal broader market confidence.
This surge in Bitcoin and the overall market’s performance come amidst a backdrop of ongoing institutional interest and dynamic market shifts.