The German government has been steadily selling off its Bitcoin (CRYPTO:BTC) holdings, totaling nearly 24,000 BTC ($1.42 billion), acquired from seizures related to illegal activities.

Recent transfers of over 1,100 BTC to exchanges like Kraken indicate ongoing sales, mandated by legal procedures following the seizure from the pirated movie site Movie2k.

While these sales have influenced market sentiment negatively, they are required under Saxony's jurisdiction to liquidate confiscated assets within specific timelines.

Simultaneously, institutional investors have seized the opportunity presented by Bitcoin's recent dip, contributing to three consecutive days of net inflows into Spot Bitcoin ETFs.

This influx, totaling $216.4 million on July 9 alone, signals renewed confidence from institutions in Bitcoin's potential, pushing its price back towards $60,000.