Bitcoin price lost almost 10% on Sunday, after an already noticeable 3% drop on Friday, extending one of the coin’s worst weeks this year. 
 
This marked decline in Bitcoin prices has stirred widespread concern and speculation across crypto traders. Does this mean that BTC has peaked, or is it merely a temporary correction? As the sentiment in the Bitcoin markets shifts from "Greed" to "Fear" after several months of bullish behavior, it becomes important to explore the underlying causes of this change. To do this, let's take a look at the main sources of selling pressure, as well as some high-profile buying activities.
 
BTC selling pressure
 
Recently, Crypto Twitter has been abuzz with discussions about several potential reasons for increased selling pressure. Those include German government offloading confiscated coins, Bitcoin miners selling their holdings in the aftermath of the halving, and Mt Gox trustees announcing imminent repayments to creditors.
 
Governments are among the biggest BTC holders, notably thanks to the seizures of unlawfully gained bitcoin. In 2020, German police took down the piracy website movie2k.to which was active until 2013. This January, it gained access to the 50,000 BTC the site had generated. Last week, blockchain observers noticed some movement from the Government’s address, which has so far sent over 2000 BTC to Kraken, Bitstamp, and Coinbase exchanges (supposedly in order to sell). It also moved 6,500 BTC across its own “service wallets”, which can also indicate the intention to sell in the near future (source: ArkhamIntelligence). If Germany intends to sell all of its confiscated coins, we are about to see up to 50,000 new bitcoin on the market.
 
Bitcoin miners are the natural sellers, as they require a stable cash flow to sustain their capital-intensive operations. Last week, miners’ selloff (both to the exchanges and OTC) hit a two-month high, as noticed by CryptoQuant. On some days, exchange deposits reached 3,000 BTC and OTC deals over 1,000 BTC, while the “normal” sales have been recently hovering around 1,500 and 500, respectively.
 
Mt. Gox-related selling sentiment has been influencing the market since 2021, when the Tokyo District Court approved a rehabilitation plan for this exchange hacked and collapsed in 2013. Indeed, the substantial sum of 141,687 BTC, currently valued at approximately $8.7 billion, has the potential to drive the market downward if the repaid creditors choose to sell all at once. Mt.Gox trustees scheduled the first repayments for the beginning of July, intensifying market fears.
 
However, the Mt.Gox FUD is likely to be exaggerated. Creditors’ refund has been in the works for years now, and it is likely to be already priced in. Additionally, given that many creditors have an average cost basis of less than $700 per bitcoin, they are likely to retain their holdings rather than sell. It could be argued that those creditors who needed immediate cash have likely already sold their bankruptcy claims to more convicted investors.
 
U.S.-listed cryptocurrency funds have also been recording outflows recently. As shown by CoinShares, over $1 billion of Bitcoin funds’ shares have been sold over the past two weeks. Some analysts believe that those investors left crypto to chase greener pastures in highly performing equities, such as Nvidia.
 
High-profile buying
 
However, despite the reported selling pressure, the number of big Bitcoin buyers continues to grow.
 
Michael Dell, founder and CEO of Dell Technologies, has stirred much excitement in the Bitcoin community recently. In a series of suggestive tweets like “Scarcity creates value” or a Bitcoin-eating cookie monster, the billionaire hinted he could become the next high-profile Bitcoin aficionado. With Dell Technologies' stock increasing nearly fivefold since its 2018 public market return and its comfortable $5.8 billion pile of cash, the company’s potential investment in Bitcoin could impact the market significantly. Otherwise, Mr Dell himself could create a noticeable buying pressure. This year, he cashed out $2.1 billion while retaining 58% of the company's ownership.
 
Also, this Monday, Japan-based investment advisor Metaplanet announced its plans to buy another $6 million in BTC, to add to its $9 million BTC holdings.
 
Other Bitcoin bulls, like Michael Saylor and his company MicroStrategy, continue to exert a steady buying pressure on the market. Last week, MicroStrategy acquired another 11,931 BTC, bringing its BTC treasury to an impressive 226,331 BTC, now worth almost $14 billion.