Bitcoin Price Prediction: German BTC Transfer and ETF Outflows; Will BTC Recover Above $61,000?
Bitcoin (BTC), the world’s oldest and most valuable cryptocurrency, has struggled to halt its downward trend, falling below the $61,000 level and hitting an intraday low of $58,890. BTC has since recovered and is now trading above the $61,000 mark.
Contributing factors to this decline include the German government’s transfer of nearly 6,500 BTC, Mt. Gox announcing the return of $8.5 billion worth of BTC to clients, and significant outflows from spot Bitcoin ETFs.
Additionally, stronger US economic data and the Federal Reserve’s hawkish stance are key factors weighing on BTC prices. Investors are also closely watching the upcoming CB Consumer Confidence data from the US, expected at 100.0, down from the previous 102.0, which could further influence market sentiment.
A recent transfer by a wallet labeled “German Government (BKA)” by Arkham has raised eyebrows in the cryptocurrency community. This wallet moved 6,500 BTC, valued at over $425 million, including 1,000 BTC to Kraken and Bitstamp. The transactions have led to speculation about a potential liquidation of seized assets. Despite these large movements, the wallet still holds 43,359 BTC, worth approximately $2.83 billion.
This significant activity suggests an increase in selling pressure, especially from long-term Bitcoin holders. If these assets are moved to exchanges, it could lead to a further decline in Bitcoin prices.
Key Points:
Significant outflows from Bitcoin ETFs, surpassing $1 billion in the last ten days, are putting downward pressure on BTC price. Grayscale’s GBTC has seen total outflows of $18.4 billion since inception. On June 24, spot Bitcoin ETFs recorded $170 million in outflows, with BlackRock’s BIT seeing no inflows.
Despite a strong start to 2024
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