Germany’s government has finalized the divestiture of its remaining Bitcoin holdings on July 12, according to Arkham Intelligence data.

The concluding transaction involved the transfer of 3,846 Bitcoin, directed to entities identified as “Flow Traders and 139Po,” which Arkham characterizes as “likely institutional deposit/OTC service.” This sale followed a series of significant liquidations by the German government over recent weeks, during which tens of thousands of Bitcoin were sold in multiple tranches.

These liquidations stemmed predominantly from asset seizures, with the German government offloading approximately 50,000 Bitcoin over the past three weeks. This substantial influx of Bitcoin into the market contributed to the cryptocurrency’s struggle to surpass the $60,000 threshold and its 200-day exponential moving average.

Ongoing Market Suppression from Institutional Pressure

Despite Germany’s depletion of its Bitcoin reserves, the market remains under pressure due to the impending $9 billion Mt. Gox reimbursement plan, which may continue to weigh down Bitcoin prices. This prolonged selling pressure sustains a climate of fear, uncertainty, and doubt that has shadowed the market in recent months.

The collapse of Mt. Gox in 2014, when Bitcoin traded at mere hundreds of dollars, left a significant impact. However, IG Markets analyst Tony Sycamore contends that the Mt. Gox reimbursements will not have the catastrophic effect that many investors fear. Sycamore argues that multiple variables will influence the actions of Mt. Gox creditors. He anticipates that half of the reimbursement supply might reach exchanges this July.

Sycamore is confident that the reimbursement is already factored into the Bitcoin market. He told Cointelegraph that the plan’s details have been known to investors for a considerable time, thus diminishing the element of surprise.

Institutional Investors Capitalize on Market Dip

Amid this heightened selling pressure, institutional investors have been seizing the opportunity to buy the dip. CoinShares data indicates that U.S. exchange-traded funds (ETFs) attracted $295 million in inflows during the week of July 8, reversing several weeks of subdued activity in these investment vehicles.