As you may know, the recent sale of Bitcoin (BTC) by the German government is causing quite a stir in the crypto world. Germany is currently selling a significant amount of BTC, which is negatively impacting the price. According to Arkham Intelligence, Germany still holds 39,826 BTC, worth an estimated $2.2 billion.
Where do German Bitcoins come from?
Earlier this year, the German Federal Criminal Police Office (BKA) seized 49,857 BTC from the operators of Movie2k.to, a website that has been offline since 2013. Since June, the German government has sold over 10,000 Bitcoin, which coincided with a significant correction in the Bitcoin market. Over the past four weeks, the Bitcoin price has dropped by almost 20 percent.
Why the German government decided to sell this BTC stock is unknown. The reason behind the timing also remains unclear. What is certain is that the Bitcoin price is under considerable pressure due to this sale. In addition, there is a good chance that the German government is not yet finished selling Bitcoin.
Last week, Justin Sun, the founder of the Tron (TRON) network, offered to acquire Bitcoin from the German government over the counter to reduce the negative impact on the price.
However, it is uncertain whether this offer will be accepted and how serious Sun’s action is. He is known for his striking statements. Moreover, it is not clear where he would get the more than $2 billion from.
Germany is making a big mistake
The sale of Bitcoin by Germany shows little confidence in the future of the cryptocurrency. Some experts even consider this sale a big mistake. Analysts at Blockware say about this:
“It is foolish that the German government has sent over $390 million worth of Bitcoin to exchanges in recent weeks to sell for fiat currency. From a geopolitical perspective, it is a strategic blunder for any nation state to sell Bitcoin for fiat currency, as the latter can simply be printed out of thin air.”
With the 50,000 Bitcoin in its possession, the German government was sitting on a proverbial goldmine. As you know, there will only ever be a maximum of 21 million BTC, which makes it extremely difficult to acquire a large amount of Bitcoin. Despite this, the German government prefers fiat currency. It is also possible that the government wanted to cause a drop in the price of Bitcoin, but this remains speculation.
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Source: https://newsbit.nl/is-duitsland-klaar-met-het-verkopen-van-bitcoin/
