Bitcoin (BTC) Was Oversold in June as German Authorities Dumped 50K BTC, ARK Invest Report Shows

In a report released on July 18th, ARK Invest analyzed Bitcoin's performance in June, noting a significant drop after a large sell-off by German authorities.

A report by ARK Invest on July 18th highlighted Bitcoin’s performance in June, specifically mentioning a large sell-off by German authorities that significantly impacted the cryptocurrency's price.

According to the report, Bitcoin was oversold during this period. German authorities liquidated 50,000 BTC, which were seized from the pirated content platform Movie2k in 2020. This sell-off drove Bitcoin prices down from over $70,000 to below $55,000.

However, ARK Invest also noted that Bitcoin ETFs continued to attract investments during this time, indicating resilience in investor confidence despite the sell-off.

Data from CryptoQuant aligns with ARK’s findings, suggesting that Bitcoin miners began to capitulate after the April halving event. This capitulation led to reduced yields, forcing miners to sell BTC to stay operational.

Bitcoin ETFs saw significant inflows, with over $400 million being added on June 16th alone. Among these ETFs, BlackRock’s IBIT ETF led the way with $260 million, marking the highest inflows since early July.

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According to Bloomberg analyst Eric Balchunas, Bitcoin ETFs have performed exceptionally well, capturing over $16 billion in market share within six months of their U.S. launch. These ETFs have also seen inflows of over $1 billion in the last two weeks.

However, the report also mentions potential turbulence on the horizon with the Mt. Gox rehabilitation program. The defunct exchange, which declared bankruptcy in 2014, has started repaying creditors.

Recently, the exchange transferred over 48,000 BTC to Kraken for disbursement to creditors. As of July 16th, 13,000 creditors had already received their payments. This ongoing process could influence Bitcoin prices in the near term.

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