July 24, 2024

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Is Germany done selling Bitcoin?

Is Germany done selling Bitcoin?

As you 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 large amount of Bitcoin, which is having a negative impact on the price. According to Arkham Intelligence, Germany still owns 39,826 Bitcoin, worth an estimated $2.2 billion.

Where does German Bitcoin come from?

Earlier this year, the German Federal Criminal Police Office (BKA) seized 49,857 bitcoins from the operators of Movie2k.to, a website that has been offline since 2013. Since June, the German government has sold more than 10,000 bitcoins, coinciding with a major correction in the bitcoin market. In the past four weeks, the price of bitcoin has fallen by almost 20 percent.

Why the German government decided to sell this supply of Bitcoin is unknown. The reason behind the timing is also still unclear. What is certain is that the price of Bitcoin is under significant pressure due to this sale. Additionally, there is a good chance that the German government is not done selling Bitcoin yet.

Last week, TRON founder Justin Sun offered to buy 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 or how serious Sun’s action is. He is known for his eye-catching statements. Moreover, it is not clear where he will get more than $2 billion from.

Germany is making a big mistake

Germany’s Bitcoin sale shows little confidence in the future of the cryptocurrency. Some experts even consider the sale a big mistake. Blockware analysts say:

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“It is foolish for the German government to send over $390 million worth of bitcoin to exchanges in recent weeks to sell for fiat currency. From a geopolitical perspective, selling bitcoin for fiat currency is a strategic mistake for any nation state, as fiat currency can simply be printed out of thin air.”

With the 50,000 bitcoins in its possession, the German government was sitting on a proverbial gold mine. As you know, there will be a cap of 21 million bitcoins, making it extremely difficult to accumulate a large amount of bitcoins. Despite this, the German government prefers fiat currency. It is also possible that the government wanted to cause the price of bitcoin to fall, but this remains speculation.

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