The German State of Saxony BTC selling is nearing its end, as almost 90% of its Bitcoin holdings were sold.
The State of Saxony seized 50,000 BTC, price around $2 billion, from the previous operator of movie2k, a pirate movies website. The operator converted the web site’s earnings to Bitcoin, believing on the time (2013) that it was untraceable and hoping its value would increase.
The selling pressure contributed to a decline in Bitcoin price. Blockchain analytics platform Arkham Intelligence shows that only 6,146 BTC are unnoticed of the 50,000, comparable to around $350 million. The selling continues to be ongoing on the time of this writing:
source: arkham intelligence
Kraken and Coinbase crypto exchanges have been utilized in recent transactions. In line with Arkham Intelligence, the Bitcoin sent to the German address is probably going unsold BTC.
There is theory that the remaining balance shall be sold today. If Bitcoin recovers once the German selling ends, bargain hunters may try to pick it up from its lows.
Before the selling, BTC-related tokens—SATS, STX, and ORDI—posted moderate gains throughout the most up-to-date Bitcoin recovery.
Why ORDI, SATS, and STX?
Ordinals (ORDI) is the native token of the Ordinals Protocol. The protocol utilizes a fraction of a Bitcoin to mint or inscribe NFTs and tokens.
Tokens inscribed on Ordinals are often called BRC-20 tokens. At first, BRC-20 didn’t receive much exposure until Binance announced a BRC-20 launchpad.
SATS is a meme coin on Ordinals, which has demonstrated strong resilience despite BTC selling.
Alternatively, STX is the native token of Stacks, a platform enabling users to construct decentralized applications (dApps) on the Bitcoin blockchain.
In a recovery, BTC-related tokens may post stronger gains than Bitcoin.
It’s going to be interesting to see whether BTC recovery can even affect ongoing presales reminiscent of 99Bitcoins that may launch on Ordinals.
Will Bitcoin rebound? All eyes on MicroStrategy
MicroStrategy has been actively buying Bitcoin when the value falls. MicroStrategy holds roughly 226,331 BTC.
In line with the form-8k submitted to the US SEC, ‘In April 27, 2024 and June 19, 2024, MicroStrategy acquired roughly 11,931 bitcoins for roughly $786.0 million in money, using proceeds from the Offering and Excess Money.’
Once the State of Saxony liquidates all or most of its Bitcoin holdings, it should be interesting to see whether MicroStrategy steps in to ‘buy the dip.’
While the official update will not be fast if large BTC transactions emerge, the speculations could also be sufficient to jumpstart a recovery.
Please note that MicroStrategy announced a 10-for-1 stock split on Thursday for those considering buying stock.
source: tradingview
From a technical angle, the important thing resistance on the 4-hour chart is around $59,250. A firm break above this level may result in stronger gains.