Bitcoin sold after German government sale – ARK Invest
According to a report by asset manager ARK Invest, released on July 18, bitcoin began overselling in June after the German government seized 50,000 BTC in a 2020 police raid on suspected pirated content streaming platform Movie2k.
Lasting until mid-July and eventually netting $2.8 billion by German authorities, the price of Bitcoin (BTC) peaked above $70,000 in early June before falling below $55,000 in a brief rout in July.
“Based on short-term owner gains/losses and miners, Bitcoin appears to be oversold,” said the report, which focuses on the period through June 30, but includes more recent data. “Current standards [of miner outflows] They suggest that miners are digging, which is a turning point in bullying.
Investors' continued appetite for BTC exchange-traded funds (ETFs) is another sign of bullishness, according to ARK. The report indicated that BTC's sharp selloff did not trigger a mass exodus from BTC ETFs. Since June 30, BTC's spot price decline has outperformed the 30-day percentage change in the BTC ETF by 17.3%.
July saw billions of dollars net inflows into BTC ETFs, with an estimated $1.35 billion flowing into the funds during the week of July 15, according to CoinShares. BlackRock's iShares Bitcoin Trust (IBIT) hit $107 million on July 18 after nine consecutive days of inflows, according to Thomas Fahr, founder of crypto data platform Apollo.
Related: BlackRock's BTC ETF Investors Continue to Buy Despite ‘Crowdy' View of Bitcoin
One risk to BTC's continued strong performance is global economic data. Corporate profits are steadily declining as pricing power declines, a sign of economic weakness, according to ARK.
Bitcoin prices face potential headwinds from the defunct cryptocurrency exchange MT Gox's recent payment of $9 billion in BTC to creditors. However, unlike the German flash sale, lenders may choose to hold BTC, softening any impact on the broader market, industry analysts say.
Magazine: Can the financial crisis end the crypto bull run?
