Germany transfers another 1000 BTC, markets suffer negative hit

According to Arkham Intelligence, the German government moved another 1000 BTC on July 8th, with a significant amount deposited to Coinbase and Bitstamp.  Germany’s Bitcoin sell-off comes at a dire time in the crypto market, causing uncertainty and significant price fluctuations. The country’s remaining BTC reserves hold about 35,400 BTC worth approximately $2.04 billion.

Germany started selling off its BTC holdings seized from illegal activities on June 19th, reaching approximately 9000 BTC, worth over $500 million. The sell-off has raised questions within the crypto community, with many believing the country will regret the decision. The sell-off has also attracted a string of ridicule from the online community. 

Also Read: Justin Sun ridicules Germany’s Bitcoin sell-off after UEFA Euro knockout  

Tron’s founder, Justin Sun, made fun of the country’s decision on July 6, saying Germany’s massive BTC sell-off was the reason behind its loss to Spain in the 2024 UEFA Euro quarter-finals. Later, Justin offered to buy all of Germany’s remaining BTC holdings to reduce the impact of the outflows on the crypto market. 

Since June 19th, BTC prices have dropped by over 12%, trading at $57,200 at the time of writing. While the prices recovered late last week, BTC and the overall crypto market prices are still down compared to the previous week. Bitcoin is down by 8.83%, ETH by 11.9%, SOL by 3.622%, and XRP by 8.77%. However, the 24-hour price change for most cryptocurrencies, including BTC and ETH, is positive. 

German politician asks the government to reconsider

Independent Member of Parliament Joana Cotar requested the German government to reconsider the current sell-off. Joana expressed her worry about the government selling its BTC reserves without having a proper strategy.

Joana also mentioned that she would be speculating if she said she knew the reason why the country was liquidating its assets. She assumed that the upcoming elections could have influenced the current decision.

However, Joana insisted that the German government does not understand the depth and consequences of its decisions. She said that while Germany liquidates its BTC reserves, investors, including those on Wall Street, are buying the dip.

“It is really frustrating to have to watch politicians who have no idea about the matter squander a great opportunity,”

Joana Cotar on Forbes

In a July 4 tweet, Joana expressed her frustrations to the government after asking multiple key figures to reconsider and strategize the sell-offs. She encouraged them to join her and Excellion’s Samson Mow in a lecture on October 17, discussing strategies states can use to leverage BTC.

Also Read: Metaplanet Inc. directors authorize BTC purchases worth ¥1 billion using bond proceeds  

She mentioned that countries like the U.S. are discussing how to use BTC as a strategic reserve. However, the U.S. Department of Justice moved approximately $2 billion in BTC seized from the Silk Road marketplace in April. Silk Road facilitated the exchange of multiple illegal goods, including stolen personal information, drugs, and weapons. 

Uncertainty spreads as Germany buys back BTC

In a dramatic turn of events, Arkham Intelligence data showed that Germany bought back 1915 BTC, confusing many in the crypto community. The German government purchased the BTC worth approximately $111 million from Bitstamp, Kraken, and Coinbase.

Several tweets speculated on what might have happened, with some expecting the government to sell its OTC assets. Others hoped the country would change its strategy and stop the heavy BTC sales.

Cryptopolitan reporting by Collins J. Okoth