Alex Dovbnya
Bitcoin bulls have a reason to be optimistic as a German state is finally done selling its BTC holdings
According to cryptocurrency research firm Arkham Intelligence, Saxony, a state in eastern Germany, has now liquidated all of its Bitcoin holdings.
Saxony’s relentless selling spree has been a major bearish headwind for the leading cryptocurrency by market cap since the start of June. Last week, the leading cryptocurrency collapsed below the $64,000 level, reaching its lowest price point in roughly five months.
The German state originally owned 50,000 Bitcoins that were confiscated earlier this year from the operators of the Movie2K piracy website.
Following the confiscation, Germany ranked as one of the top holders of Bitcoin among different governments (behind only the U.S., China, and the U.K.). However, it no longer holds any Bitcoin.
As reported by U.Today, Saxony’s sales were absorbed by Bitcoin ETF investors who were eager to buy the dip. On Thursday, these products recorded another $79 million worth of inflows. In fact, they have now seen their best week since May with an impressive $882 million worth of inflows.
The selling spree naturally attracted plenty of criticism from the members of the Bitcoin community. Joana Cotar, Germany’s pro-crypto MP, called for halting the sales, arguing that holding the cryptocurrency would be beneficial for the state.
Despite the apparent end of Saxony’s Bitcoin sales, there are also other headwinds such as Mt. Gox repayments. This means that Bitcoin bulls are not out of the woods just yet.
The leading cryptocurrency is currently trading at $57,723, according to CoinGecko data.