The German government sells its last Bitcoin holdings

According to data from Arkham Intelligence, the German government sold its last Bitcoin holdings on July 12th, officially reducing its Bitcoin position to zero. The transaction involved 3,846 Bitcoins sent to "Flow Traders and 139Po", which Arkham described as possibly being "institutional deposits/over-the-counter trading services". This move was made after several weeks of increased selling pressure by the German government, during which tens of thousands of Bitcoins were sold in batches.

Over the past three weeks, the German government has sold a total of 50,000 Bitcoins. Most of these came from asset seizures and this action is largely responsible for keeping market prices below $60,000 and its 200-day moving average.

Although the German government has exhausted its Bitcoin reserves, selling pressure from Mt. Gox's $9 billion repayment plan could continue to suppress Bitcoin prices over the next few weeks and perpetuate an atmosphere of fear, uncertainty and doubt that markets have faced recently.

Analyst Jacob King believes that investors seeking windfall profits may sell off 99% out of Mt. Gox's $8.2 billion. In addition, IG Markets analyst Tony Sycamore stated that Mt.Gox payments will not have as disastrous an impact on the market as many investors anticipate. He predicts half of repayments supply might enter exchanges at some point in July.

Meanwhile during periods with increased selling pressure institutional investors chose to "buy low". Data from CoinShares shows that US Exchange-Traded Funds (ETFs) attracted inflows worth $295 million during week commencing July 8th reversing previous weeks' sluggish fund inflow trend.