Bitcoin

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/germany-sells-50000-bitcoins-and-influences-the-market/" data-wpel-link="internal">Germany Sells 50,000 Bitcoins and Influences the Market</a><br></p>
<p style="text-align: justify">Analyst <strong>Joe Burnett</strong> suggests Germany’s decision to sell 50,000 Bitcoins could signal a <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">market</a> bottom. Burnett argues that announcing such a large sale creates a reflexive feedback loop. This situation may cause prices to drop further than usual due to market participants’ reactions.</p> 
<h2 style="text-align: justify" id="germany-s-bitcoin-sale-affects-the-market">Germany’s Bitcoin Sale Affects the Market</h2> 
<p style="text-align: justify">Germany made a move that could create significant waves in the <a href="https://en.coin-turk.com/crypto-markets-update-bitcoin-price-holds-altcoins-show-promising-gains/" data-wpel-link="internal">cryptocurrency</a> world by deciding to sell 50,000 Bitcoins. Analyst Joe Burnett indicates this decision could have substantial effects on the market and potentially signal a market bottom.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-368210 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/07/btc-analist-.png" alt="" width="511" height="469"></p> 
<p style="text-align: justify">Burnett asks readers to imagine a large investor or “whale” wanting to buy 1,000 Bitcoins at $60,000 each. If Germany still has 40,000 Bitcoins to sell, the rational strategy for this whale is to avoid being at the top of the order book.</p> 
<p style="text-align: justify">The top of the order book is where the highest buy orders are placed, and this whale lowers its bid to $55,000, ensuring there are 39,000 Bitcoins worth of higher bids above its own. This way, the whale maintains its position and increases the likelihood of buying at a lower price.</p> 
<h2 style="text-align: justify" id="behavior-of-market-participants">Behavior of Market Participants</h2> 
<p style="text-align: justify">However, this whale won’t be the only market participant thinking this way. According to the analyst, another whale sees the first lowering its bid and decides to lower its own bid to $54,900 to avoid being at the top of the order book.</p> 
<p style="text-align: justify">This situation continues as every investor tries to avoid having the highest bid while Germany keeps selling its Bitcoins. The term “Chicken Game” is a strategic <a href="https://newslinker.co/category/gaming/" target="_blank" rel="noopener" data-wpel-link="exclude">game</a> often encountered in international disputes or conflicts. In such scenarios, parties try to impose their conditions on the other side without yielding. The result of this behavior is a cascading effect where bids are continuously lowered until Germany sells all 50,000 Bitcoins.</p> 
<h2 style="text-align: justify" id="towards-bottom-levels-in-bitcoin-and-cryptocurrencies">Towards Bottom Levels in Bitcoin and Cryptocurrencies</h2> 
<p style="text-align: justify">According to the analyst, Germany’s sale of 50,000 <strong>BTC</strong>, combined with the reflexive reactions of market participants, creates significant temporary downward pressure. Burnett’s analysis suggests that once Germany completes its sale, the known, guaranteed market selling pressure will disappear.</p> 
<p style="text-align: justify">The end of this selling pressure could lead to a market bottom where prices stabilize and potentially start rising again. According to Burnett, market participants could make potential gains by buying at this low point.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/germany-sells-50000-bitcoins-and-influences-the-market/" data-wpel-link="internal">Germany Sells 50,000 Bitcoins and Influences the Market</a></h5>

Germany Sells 50,000 Bitcoins and Influences the Market

Table of Contents

COINTURK NEWS

Other articles published on Jul 5, 2024

Bitcoin’s Decline Hits Crypto Stocks in Premarket Trading

This Week in Meme Coins: DOGE Struggles, PEPE Liquidations Rise

$100M Bitcoin liquidated as BTC drops: Will ETF investors panic sell?

Terra Classic Boosts Hexxagon.io with 30M LUNC Delegation

Bitcoin Price Crashes Below $54,000: Top-5 Reasons

Crypto remittances in Venezuela surge as economic situation worsens

Join our free newsletter for daily crypto updates!