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Germany’s Bitcoin Reserves Dwindle After Massive Liquidation Spree

Germany’s Bitcoin Reserves Dwindle After Massive Liquidation Spree

CoineditionCoinedition2024/07/12 13:22
By:Abdulkarim Abdulwahab
  • Germany’s $3.5 billion bitcoin portfolio has been drained to $350 million.
  • Today alone, they already unloaded 3,000 Bitcoins worth $172 million. 
  • German parliament member Joana Cotar advocated for the country to hold onto Bitcoin as a strategic reserve currency.

German authorities have nearly exhausted their Bitcoin reserves after consecutive days of significant liquidation that have dampened the crypto market’s bull run progress. According to the latest data from Arkham Intelligence , the German government now holds only 6,146 BTC tokens, valued at approximately $350 million.

As of Monday, June 8, the government’s Bitcoin wallet held 39,826 Bitcoin valued at over $2.6 billion, implying they have liquidated a staggering $1.9 billion in BTC in under a week. Today alone, the German government has unloaded 3,000 tokens worth $172 million. With their wallet dwindling to around $350 million worth of Bitcoin, a typical amount unloaded in a day, the authorities appear to be preparing for their final dump.

Early this year, German police seized 50,000 BTC tokens worth over $3.5 billion from a former operator of the now-defunct piracy website movie2k.to. Last month, the government began selling the assets, with a staggering 90% of the holdings now offloaded.

This one-month-long Bitcoin sale has drawn criticism from prominent figures in the crypto community. In a recent tweet, Michaël van de Poppe, founder of MN Trading Consultancy, expressed surprise at how the crypto market absorbed the massive selling pressure, with BTC remaining around $60,000.

German parliament member Joana Cotar voiced opposition to the government’s sale, labeling it irrational, and advocated for the country to retain Bitcoin as a strategic reserve currency.
El Salvador, meanwhile, has taken a different approach, holding 5,808 Bitcoins in reserve with no plans to sell. Furthermore, El Salvador has even drafted a law that would allow the creation of private investment banks operating with Bitcoin and other digital assets.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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