The price of Bitcoin has soared to $65,000 due to the German government's sale causing complete seller exhaustion

According to on-chain data from Glassnode, Bitcoin's price showed remarkable strength after the German government sold more than 48,000 BTC. Market participants absorbed these Bitcoins, leading to a "short-term relief of selling pressure" for sellers. From its low point of $56,616 on July 12th, Bitcoin's price has risen by over 20% in an ongoing recovery to an intraday high of $65,210 on July 16th. Glassnode attributes this to the "complete exhaustion" of selling pressure from the German government.

The market intelligence company pointed out that large entities including miners and institutions have always been the main source of selling pressure. The recent drop in Bitcoin's price to $53,000 was mainly due to anticipated repayments from Japan’s bankrupt cryptocurrency exchange Mt. Gox and sales of BTC by the German government.

Glassnode's report noted that most sales by the German government occurred after Bitcoin’s price fell to around $54,000 without further decline indicating that these sales had already been priced into the market. In addition, according to Glassnode data, continuous inflows into ETFs over past few days also helped alleviate pressures in Bitcoin markets. The sell-off near the 200-day moving average at $54k for bitcoin ETFs when their average cost basis was at $58k shows significant positive interest since early June with inflows exceeding one billion dollars last week alone.