Germany has rapidly offloaded its confiscated Bitcoin holdings, transferring over 35,000 BTC, valued at $3 billion, to exchanges in the past three weeks. This move might ease concerns among crypto investors about potential supply overhangs from large sellers like the U.S. government and the Mt. Gox estate, which have also recently moved substantial amounts of BTC to exchanges.
However, JPMorgan forecasts a rebound in the crypto market starting in August. The bank has reduced its year-to-date net flow estimate to $8 billion from $12 billion, attributing the decline in bitcoin reserves across exchanges to these liquidations and sales. Despite high bitcoin prices relative to production costs and gold, the bank remains cautious about the $12 billion estimate.
In the U.S., the House of Representatives failed to override President Biden’s veto of a bill to end the SEC’s controversial crypto accounting policy, SAB 121. This policy mandates public companies to hold customers’ crypto assets on their own balance sheets, a measure criticized by the crypto industry as punitive.
June’s inflation data in the U.S. turned negative, with the CPI dropping 0.1% and the core CPI increasing just 0.1%. This softer-than-expected data heightened expectations for imminent Fed rate cuts, leading to a drop in the U.S. dollar and a surge in bitcoin prices above $59,000. Gold prices also rose by 1% to $2,404 per ounce.
