• German government has sold all of its Bitcoin holdings, totaling approximately $2.9B
• The selloff contributed to a 15% drop in Bitcoin’s price over the past 30 days, pushing it to a 4-month low of around $57,700
• With the selloff completed, some experts believe Bitcoin could rebound in the coming weeks, aided by positive inflation data and the upcoming arrival of Ethereum ETFs
The German government has officially sold off all of its Bitcoin holdings, totaling approximately $2.9 billion in a massive selloff of the cryptocurrency. This development is expected to have significant impacts on the broader Bitcoin market.
Background on Germany’s Bitcoin Holdings
Germany had accumulated as much as 50,000 BTC since June of this year. The assets were initially seized in January and were worth a remarkable $2.8 billion at the time. On Monday, Germany sold $900 million worth of Bitcoin from its wallet – the largest single-day liquidation yet, demonstrating its focus on depleting the stash.
The Bitcoins originated from a 2013 seizure of nearly 50,000 BTC from the operators of Movie2k.to, a major film piracy website. At today’s prices, the holdings are worth close to $3 billion. Like the U.S., Germany has been getting rid of its Bitcoin reserves by selling to exchanges including Bitstamp and Kraken.
Impact on Bitcoin’s Price
Bitcoin has fallen from its steady $60,000 range to a 4-month low of just over $57,700 at press time, down 15% in the last 30 days. Germany’s Bitcoin sell-off contributed to market panic around the cryptocurrency, causing it to plummet.
However, there is optimism that Bitcoin can rebound now that the sell-off is complete and recent inflation data has been positive. Some market experts believe BTC will rally back in the coming weeks. Furthermore, the upcoming launch of Ethereum ETFs could boost hype in the ETF space, providing healthy competition for Bitcoin ETFs and lift BTC correspondingly.
Conclusion
The German government’s liquidation of its massive Bitcoin holdings is now complete, removing a major source of sell pressure. While the selloff contributed to recent weakness in Bitcoin’s price, analysts are optimistic about a rebound with the sell pressure abated. The development highlights Germany’s stance on cryptocurrencies as it exits its position entirely.
