Germany is done with its Bitcoin selling and has no further influence on its price.
Bitcoin ETFs are seeing inflows for the first time in weeks, indicating renewed confidence from institutional investors.
Bitcoin price is currently around $63,000 and is still attempting to break above the $65,000 mark.
More Mt. Gox repayments could cause future volatility, and analysts predict that Investors might sell a large portion of the $8.2 billion to come.
Analysts and experts have increasingly picked sides with Bitcoin over the past few weeks.
While some analysts see the cryptocurrency recovering from here and making another attempt to break the $70,000 price level, others believe that a more significant decline is coming and will take Bitcoin to a retest of the $50,000 zone or even lower.
However, there are a few reasons to believe that Bitcoin might be at (or close to) a bottom and that a recovery might be inbound.
Here are some of them:
According to insights from Arkham Intelligence, after weeks of selling, the German government now has $0 worth of the cryptocurrency in its reserves.
The selling that came before Germany's final offload put significant pressure on Bitcoin's price, forcing it below the $60,000 mark on several occasions.
Arkham Intelligence reports that the final sell-off happened on 12 July, when the German government sold its remaining 3,846 Bitcoin to entities like Flow Traders and 139Po through what Arkham believes to be institutional deposit or OTC services.
After three weeks of selling tens of thousands of Bitcoin, this marks the final offload.
The latest sell-off from Germany has brought Bitcoin to a current price of around $58,000, with no indication of a break above $60,000.
However, data also shows that institutional investors have been jumping in and buying the dip.
The ETF market, in particular, saw inflows for the first time between 8 July and 12 July, after weeks of outflows.
This indicates a significant bullish sentiment toward Bitcoin and shows that investors are regaining confidence in its ability to recover.
The trend of spot Bitcoin ETF inflows peaked on Friday, 12 July, when the market recorded an impressive $310 million inflows.
This inflow rate marks the highest inflows since 5 June, with Blackrock's iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC) leading the charge and taking in $120 million and $115.1 million in inflows, respectively.
Other top gainers included Bitwise's BITB, with $28.4 million inflows.
According to data from Farside, even Grayscale, notorious for bucking bullish trends, saw inflows of $23 million.
The Bitcoin ETF market inflows
Data from Soso value also shows that the ETF market raked in more than $1 billion between 5 July and 12 July, saving the market’s AUM from its slump below the $15 billion mark and bringing the total to around $15.8 billion as of 12 July.
In summary, the return of investor confidence in the US spot Bitcoin ETFs and the end of Germany's influence on the cryptocurrency have been highly bullish signals for the flagship cryptocurrency and could be signs of a market bottom.
However, the cryptocurrency still has to contend with the ongoing Mt. Gox repayments, with analysts like Jacob King predicting that investors might be willing to sell around 99% of Mt. Gox’s $8.2 billion.
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