A significant sell-down of BTC by the German government has rattled the market for the cryptocurrency, CNBC reports, adding new selling pressure as traders brace for the continued release of even more supply to creditors of defunct crypto exchange Mt. Gox.

What’s happening? Police in the state of Saxony seized nearly 50k BTC (about USD 2.2 bn worth) back in January. Even after a series of recent sales from that position, it still holds nearly 32.5k BTC that’s worth about USD 1.9 bn at current prices. The government looks to be exiting that position in chunks — it’s sold positions worth USD 379 mn or so, with most of that hitting the market in last two weeks.

It’s a crypto bear… The sales and, in parallel, transfer of German state BTC reserves to other exchanges has helped push the price of BTC to below USD 55k on Friday to mark its lowest level since February. Together with the Mt. Gox transfers, which blockchain data suggests began last week, new supply has helped send BTC down 20% from a month ago.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning, with the ASX 200 and Nikkei, the Kospi and Hang in the red, and the Shanghai Composite largely unchanged. Nasdaq, Dow, and S&P futures were all up in overnight trading after the S&P 500 and Nasdaq closed at fresh highs again yesterday.

Futures point to a mixed open for major European benchmarks, with the Euro Stoxx 50, Germany’s Dax 30, and France’s CAC 40 all on track to open in the red while the FTSE 100 looking set to start the day in the green.

EGX30

28,412

-0.7% (YTD: +14.1%)

USD (CBE)

Buy 47.88

Sell 47.98

USD (CIB)

Buy 47.87

Sell 47.97

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,718

+0.3% (YTD: -2.1%)

ADX

9,133

-0.1% (YTD: -4.7%)

DFM

4,082

+0.3% (YTD: +0.6%)

S&P 500

5,573

+0.1% (YTD: +16.8%)

FTSE 100

8,193

-0.1% (YTD: +6.0%)

Euro Stoxx 50

4,970

-0.2% (YTD: +9.9%)

Brent crude

USD 85.75

-0.9%

Natural gas (Nymex)

USD 2.38

+0.5%

Gold

USD 2,363.50

-1.4%

BTC

USD 56,348.50

-1.7% (YTD: +33.3%)

THE CLOSING BELL-

The EGX30 fell 0.7% at yesterday’s close on turnover of EGP 4.4 bn (3.2% above the 90-day average). Foreign investors were net sellers. The index is up 14.1% YTD.

In the green: e-Finance (+5.1%), Delta Sugar (+3.7%), and Palm Hills Development (+1.8%).

In the red: Oriental Weavers (-3.8%), Abu Qir Fertilizers (-3.3%), and Orascom Construction (-3.0%).

CORPORATE ACTIONS-

#1- New investment minister leaves his seat on CFG’s board: Newly-appointed Investment and Foreign Trade Minister Hassan El Khatib is departing Concrete Fashion Group’s board after the board approved his resignation, according to an EGX disclosure (pdf).

#2- Finance Minister Ahmed Kouchouk will continue to serve on Talaat Moustafa Group’s board as a non-executive representative for Misr Ins. Company, according to an EGX statement (pdf).

#3- Fawry has issued some 12.3 mn shares, worth EGP 68.33 mn, to company employees under the company's employee stock ownership plan, according to an EGX bulletin.

#4- BdC wants to raise its capital: Banque du Caire has filed a request with the EGX to raise its authorized capital to EGP 50 bn from EGP 20 bn, according to an EGX bulletin. The bank also wants to increase its issued and paid-up capital to EGP 19 bn from EGP 10 bn by issuing 4.5 bn shares with a nominal value of EGP 2 each.

#5- MTI’s capital increase moves forward: MM Group for Industry and International Trade’s(MTI) extraordinary general assembly approved a decision to raise the company’s issued capital to EGP 936.6 mn from EGP 749.3 mn, according to an EGX disclosure (pdf).

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