German govt sold its Bitcoins for under $60,000, costing over $326 million
Key Takeaways
- German government sold 49,858 BTC for $2.89 billion, averaging $57,900 per coin.
- The sale resulted in a potential loss of over $326 million based on current Bitcoin prices.
The German government got $2.89 billion after selling all of its Bitcoin (BTC) holdings seized after closing the piracy platform Movie2k, mentioning “a risk of a significant loss of value of around ten percent or more,” as reported by on-chain intelligence firm Arkham Intelligence. Considering that the wallet had 49,858 BTC, the average price of each Bitcoin is $57,900.
Therefore, by selling all their Bitcoins under the $60,000 price level, and considering the current price over $64,000, the German government losses surpassed $326 million, which is over 10% of the amount they managed to acquire.
As reported by Crypto Briefing, the German government ran out of Bitcoins to sell on July 12th, after a 23-day selling spree. Since then, Bitcoin has risen up to 15%, nearly touching the $66,000 price level.
The CEO of on-chain analysis platform CryptoQuant, Ki Young Ju, highlighted back then that the government dump was “overestimated.” He explained that $224 billion has flowed in crypto since 2023, and the government-seized Bitcoin stash contributes to only $9 billion. “It’s only 4% of the total cumulative realized value since 2023. Don’t let govt selling FUD ruin your trades.”
Nevertheless, it was enough to put pressure on Bitcoin investors, which was only lifted after the German government ran out of BTC. Notably, there is still some pressure being applied by the repayment process of Mt. Gox’s creditors, as the BTC price fell below $64,000 after an address tied to the defunct exchange moved 47,000 BTC.
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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