TL; DR
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Last week the German government sold $2.2 billion worth of long-held Bitcoin, and prices actually rose (?), starting at ~$55k, and ending at ~$60k (an increase of ~$100 billion in market cap).
Full story
You know that scene from Pulp Fiction where Vincent and Jules are shot dead and by some miracle not a single bullet hits them?
Watching the crypto markets this past week felt similar to that.
(You thought we were about to start a Trump story, didn’t you? Well, we weren’t. That’s the next article).
This past week, the German government flooded the market with $2.2 billion worth of long-held Bitcoin – at what was perhaps the worst time to do so, after BTC fell to $54,000 (the lowest since February).
…but somehow Bitcoin emerged unscathed.
In fact: better than unscathed! It started the week at ~$55,000 and ended it at ~$60,000 (that’s a total increase of ~$100 billion in market cap).
This makes us optimistic about the coming months:
The summer months typically lead to a lull in trading volume and price appreciation, making markets particularly susceptible to larger-than-average price drops when a major sell-off occurs.
(There are not enough buyers to absorb the new supply of BTC, so the price drops to stimulate sales).
We just saw a very public and concentrated sell-off in the middle of summer, and we came out the other side better before.
Just imagine what could happen when everyone is back from the summer holidays, ready to buy into the end-of-year madness!
