Germany’s decision to offload nearly 50,000 Bitcoin in July at $53,000 per coin has resulted in an estimated loss of $2.015 billion, as Bitcoin has now reached a new all-time high of $93,434.
At current prices, the 49,858 BTC sold could have been worth around $4.57 billion.
The Bitcoin assets were sold between June 19 and July 12, generating roughly $2.8 billion for German authorities.
German Law Requires Seized Assets Like Bitcoin to be Sold
Under German national law, seized assets must be sold if their market value fluctuates by more than 10% to mitigate risks from market volatility.
The country’s substantial Bitcoin stockpile was confiscated from Movie2k.to, a movie piracy website.
In January, German police seized 50,000 BTC from the piracy website, marking it as the “most extensive security of Bitcoins by law enforcement authorities in the Federal Republic of Germany to date,” according to a press release.
In mid-June, the German government started gradually liquidating over 10,000 BTC, putting downward pressure on the cryptocurrency’s market rate.
On July 12, German authorities executed multiple transactions, transferring a total of 3,200 Bitcoin across several platforms, including Bitstamp, Kraken, and Coinbase, with each platform receiving 400 BTC.
Additionally, 1,000 BTC and 500 BTC were sent to two unknown addresses.
Later in the day, Germany’s government offloaded the last of its Bitcoin holdings, which included 3,093 Bitcoin sent to a wallet address.
However, four months later, Bitcoin and other markets have surged following Donald Trump’s recent election win, which has bolstered optimism and driven asset prices to record highs.
Bitcoin’s rally coincides with speculation over favorable regulatory changes in the United States, further fueling investor enthusiasm.
Meanwhile, Joana Cotar, a German parliament member, raised concerns about the U.S. potentially adopting Bitcoin as a strategic reserve asset.
She warned that such a move could trigger a domino effect among European nations.
“If the US buys Bitcoin as a strategic reserve, then all European countries will get FOMO,” Cotar remarked.
Bitcoin Rally Driven by More Than Just Trump Victory
Bitcoin’s recent surge has captured headlines, but analysts argue that the primary driver is not the U.S. presidential election outcome.
While Donald Trump’s victory may have sparked optimism for a Bitcoin-friendly administration, experts say the real catalyst lies in the cryptocurrency’s unique supply dynamics following its April halving.
“Yes, the incoming administration has provided a recent catalyst… But that’s not the main story here. The main story is that we are 6+ months post-halving,” Jesse Myers, co-founder of Onramp Bitcoin, wrote in a post on X.
The Bitcoin halving reduced block rewards from 6.25 BTC to 3.125 BTC, effectively slashing the rate of new Bitcoin entering circulation.
Myers highlighted that this supply reduction creates a “supply shock” that tightens availability at current price levels.
Further strengthening market sentiment, Michael Saylor’s MicroStrategy has bolstered its position as the largest corporate holder of Bitcoin with a new purchase of 27,200 BTC.
As reported, the acquisition, valued at $2.03 billion, was made between October 31 and November 10, 2024, at an average price of $74,463 per coin, including fees.
The post Germany Misses on Close to $2 Billion by Selling Bitcoin Too Early appeared first on Cryptonews.
