The Bitcoin market recently weathered major sell-side pressure, absorbing over 48,000 BTC from the German government amid ongoing Mt. Gox distributions. This comes as ETFs solidify their position as major holders in the ecosystem.
According to a July 16 report from blockchain analytics firm Glassnode, the group of Bitcoin owners keeps changing. Institutional custodians and ETFs now have a major role. The 11 new US spot ETFs have gathered 887,000 BTC. This makes them the second-biggest group of Bitcoin owners tracked.
The report shows that centralized exchanges hold the most Bitcoin, at 3 million, followed by US ETFs. Miners hold 705,000 BTC. Government entities hold 207,000 and the Mt. Gox trustee holds 139,000 BTC.
Bitcoin sell-side pressure from government entities
The recent sell-side pressure from the German government has been particularly notable. The majority of the sell-off happened after the market hit around $54,000. This suggests that traders may have expected the news. This large sell-off happened at the same time as trading in a price range and ETF outflows. This only changed as prices got closer to the average buy-in price of ETF holders at $58,200.
The report also notes a decline in exchange flows since the all-time high in March, with BTC volumes stabilizing around $1.5 billion per day. This suggests a less speculative market compared to previous bull cycles, particularly when contrasted with Ethereum’s relatively muted performance.
Despite the recent price changes, investors continue to profit. Around 25% of BTC was held at a loss when the price was at its lowest point of $53,500. Short-term owners saw big drops in profits, but long-term owners were mostly unaffected.
