Germany’s significant Bitcoin stash continues to capture the attention of the crypto market, as the country’s potential sell-off could adversely impact the price of the leading cryptocurrency.
According to data provided by Arkham Intelligence, Germany currently holds 39,826 BTC, with an approximate value of $2.2 billion. This considerable stash represents about 9% of Bitcoin’s 24-hour trading volume, which presently stands at $25.3 billion.
The origin of Germany’s Bitcoin stockpile traces back to the seizure of assets from Movie2k.to, a movie piracy website. In January, German authorities confiscated 50,000 BTC from the piracy platform, marking it as the largest seizure of Bitcoins by law enforcement in the Federal Republic of Germany to date.
German Government Resumes Bitcoin Sell-Off
Since mid-June, the German government has been gradually liquidating over 10,000 BTC, putting downward pressure on the market rate of the cryptocurrency.
These sell-offs have had a visible impact on Bitcoin’s spot price, which experienced a decline of nearly 20%, reaching $55,490, according to CoinDesk data. In just the past week, prices have slipped by approximately 13%.
The sheer magnitude of Germany’s holdings has the potential to create further price turbulence in the market.
The #German government transferred 1,000 $BTC($55.8M) out again 15 minutes ago, of which 500 $BTC($27.9M) was deposited to #Coinbase and #Bitstamp.
The #German government currently holds 38,826 $BTC($2.17B).https://t.co/h2JlBVFPsL pic.twitter.com/NS5pkMixrj
— Lookonchain (@lookonchain) July 8, 2024
Meanwhile, recognizing the potential negative consequences of large-scale sales, Justin Sun, the founder of Tron, made an offer to purchase Bitcoin from the German government off-market.
“I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market,” the crypto veteran said in a post last week.
German Lawmaker Asks Government to Stop Bitcoin Sell-Off
Last week, German lawmaker and Bitcoin activist, Joana Cotar, urged the government to halt its “hasty” Bitcoin selling spree and adopt it as a “strategic reserve currency” to safeguard against risks in the traditional financial system.
Cotar emphasized that Bitcoin could help Germany diversify its treasury assets, protect against inflation and currency devaluation, and promote innovation within the country. She argued that further sell-offs are not sensible and would be counterproductive for Germany’s interests.
“Instead of divesting, I recommend developing a comprehensive Bitcoin strategy. This could include keeping Bitcoin in the state treasury, issuing Bitcoin bonds or creating a conducive regulatory environment,” Cotar said in the translated statement.
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Cotar also mentioned that other governments, including the US, are considering or holding Bitcoin as a reserve currency. She also used the letter to invite four German politicians to the “Bitcoin Strategies for Nation States” event in October 2024.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
