If You Thought The Euros Were Bad: Paperhanded Germans Fumble Bitcoin Worth $124M

Bitcoin price is up, and German Bitcoin reserves have dried up after paper-handing behavior from the German Government. If they had held, German BTC profits would have been larger – and the picture will only sour.

The past two months have been very volatile for Bitcoin. Indeed, June came, and BTC holders suffered. Bitcoin price plunged by over -18%.

However, it was what happened in early July that forced some weak hands to give up: They sold right at the market bottom.

There were valid reasons to be afraid, at least for them.

First, Mt. Gox announced plans to accelerate their compensation, moving token distribution from October to July.

Then, there was a transfer from a Mt. Gox-linked wallet. It shook the ground, and some began exiting.

Germany BTC Dumped What is Now Billions Worth Of Bitcoin

However, the German government’s decision to sell billions worth of coins throughout the first half of July forced prices even lower.

Their move not to HODL and instead sell is what some analysts think is a colossal fumble.

No sooner had they liquidated all coins by July 13 that BTC prices began rising.

The expansion meant the German government missed out on at least $120 million of pure profits.

(Source)

After selling 50,000 BTC, Germany ended up with over $2.87 billion, earning a profit of over $740 million.

They seized these coins when prices were lower, and all coins were worth over $2.1 billion back in January.

Since July 13, when the last BTC was sold, Bitcoin price has surged by nearly -15%.

If they had chosen to wait, the government would, as expected, have secured more profits.

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German authorities justified the decision to dump, saying they feared even more price losses and weren’t in the business of speculating on prices.

Moreover, according to German laws, all seized valuables from criminals should be liquidated, especially if there is a risk of significant value depreciation.

If prices had fallen, German Bitcoin would have become more illiquid, causing even more fluctuations should prices continue dumping.

For this reason, Germany was looking to offload as much BTC as possible via multiple exchanges, taking advantage of existing liquidity and not necessarily looking for profitability.

Proceeds from Germany BTC, which the prosecutor’s office insists were sold at fair market prices, would be used to secure funds for the movie2k case.

Bitcoin Price Recovers: Will Germany Regret Paper-Handed BTC Selling?

The surge in BTC prices since July 13 was sparked by the failed attempt to end Donald Trump’s life. This assassination attempt increased the former president’s odds of winning in November.

(BTCUSDT)

At the same time, when Germany was selling, there was a clear demand from spot Bitcoin ETF issuers in the United States.

Over the last week, there have been mega inflows to spot Bitcoin ETFs, propping up prices as bulls expect more gains above $72,000 in the days to come.

(Source)

Only time will tell if the German government, though bound by law” will regret the decision.

Analysts expect Bitcoin price to reclaim all-time highs and soar above $100,000 in the months ahead now that Halving was in early Q2 2024.

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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.

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.
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