Here are this week’s most important crypto news stories, explained in a simple, beginner-friendly way, ensuring you stay informed without ever feeling overwhelmed.
This week, we cover notable market movements, shifts in investor sentiment, price changes for Bitcoin, and trending news in the crypto space.
1. German Government’s Bitcoin Sales Impact Market
The German government recently sold all of its remaining Bitcoin, totaling around 50,000 Bitcoins. This significant move means they no longer have any Bitcoin left. The sale was made in stages over the last three weeks, with the final batch recently offloaded, marking the end of their Bitcoin holdings. Germany had acquired these Bitcoins over time, mostly from confiscations during criminal investigations. The large sale of these Bitcoins was one of the reasons the market struggled to stay above the $60,000 price point and its 200-day exponential moving average. This action highlights how government decisions to hold or sell digital assets can significantly impact the crypto market.
Read more on Cointelegraph: 4, 5.
2. Bitcoin Market Sentiment
Despite Germany selling its Bitcoin, the $9 billion Mt. Gox reimbursement plan is adding selling pressure and keeping Bitcoin prices low. Mt. Gox, a cryptocurrency exchange that collapsed in 2014, is now repaying creditors, causing fear and uncertainty in the market. This has led to a drop in the Crypto Fear & Greed Index, which tracks how people feel about the crypto market. The index fell to 27 on July 9, the lowest since January 2023, indicating “extreme fear” among investors.
In January 2023, two months after the FTX exchange collapse, the index was at 26, and Bitcoin was around $16,500. By the end of that month, Bitcoin’s price had increased to $22,000. The current panic is similar, with the German government selling its Bitcoin and Mt. Gox repayments bringing prices down from $63,000 at the end of June.
Read more on Cointelegraph: 1, 2, 3, 4.
3. Why Bitcoin’s Price is Rising Again
Bitcoin’s comeback from its five-month low is gaining momentum on July 13, with the cryptocurrency rising approximately 1.70% intraday to around $58,885.
Bitcoin’s price has increased due to two main factors: the German government running out of BTC to sell and a weakening US dollar. After selling over $2.5 billion worth of BTC since mid-June, Germany’s selling pressure has decreased, aiding Bitcoin’s recovery. Initially, Bitcoin dropped by about 12.7% due to the sell-off but has since recovered over 10% in the past eight days.
The US dollar has weakened amid a growing deficit and expectations of lower interest rates. A weaker dollar makes riskier assets like Bitcoin more attractive to investors. Institutional investors have been buying Bitcoin during its dips, further supporting the price. This combination of reduced selling and increased buying has helped Bitcoin regain strength.
4. Recap of Donald Trump’s Memecoin News
Donald Trump’s memecoin, “TrumpCoin,” has surged in price following an assassination attempt on the former president. This increase highlights how events involving high-profile figures can affect the crypto market. Memecoins are particularly volatile and often driven by social media trends. The rising interest in TrumpCoin shows how political events can create both excitement and risk for investors, reminding us that while these coins can yield quick profits, they can also be unpredictable.
This week, Bitcoin’s price movements were influenced by the German government’s Bitcoin sales and a weakening US dollar. Despite initial declines, institutional investors showed confidence by buying during dips, aiding recovery. These events highlight the risks and opportunities in the crypto market, demonstrating how significant actions and market conditions can impact prices.
