On Monday, Bitcoin experienced significant market activity and rose above the $57,000 mark due to institutional confidence.
The cryptocurrency was driven by substantial inflows into U.S. spot Bitcoin ETFs, particularly BlackRock’s IBIT, which attracted $187.21 million in new investments.
Bitcoin ETFs recorded two consecutive days of strong inflows in a row after a period of uncertainty and the price declines of the last few weeks.
The inflows could help stabilise the price of the asset to a certain extent although it could remain exposed to the downside. The market could remain under pressure if the German government continues to sell its BTC holdings at a rapid pace.
Traders could continue to monitor BTC movements between the German government’s addresses and crypto exchanges in order to determine the risks of new selling pressures. The return of $200 million worth of bitcoin from exchanges to the German government wallet relieved some concerns that the assets could hit the market although the relief could be temporary.
The German government continues to hold more than $1 billion worth of cryptocurrency.
