Bitcoin Market May Face Pressure

IconCryptoNewsTerminal Staff08 Jul, 2024

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Bitcoin Market May Face Pressure

German authorities have moved 16,038 bitcoin to brokers and exchanges, according to crypto analyst Alex Krüger. This has reduced their holdings to 23,788 bitcoin. The market reacted by dropping $2,000, a 3.5% decrease. If the German authorities sell their remaining bitcoin, it could cause the market to fall by more than 10.5%. Additionally, if Mt. Gox creditors sell 30% of their repaid bitcoin, it could exacerbate the market pressure. However, Krüger believes that the market can absorb these potential sell-offs. He states, "If German authorities sell the volume at once, and the Mt. Gox creditors put 30% of the repayment volume (an estimate of their own volume that can be sold right away out of 141,000 BTC) on the market at once, BTC could immediately fall more than 10.5%, but the market can absorb it."

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