Germany still holds 39,826 bitcoins, worth $2.2 billion, despite recent sales that have shaken the market. This stash represents a significant portion of bitcoin's daily trading volume, raising the specter of further turbulence.
The controversial management of seized bitcoins
Since mid-June, the German government has been liquidating more than 10,000 bitcoins, the result of a judicial seizure from the operators of the Movie2k.to website. This operation has had a considerable impact on the market, causing the bitcoin price to drop by almost 20% in just one month.
The impact was felt beyond bitcoin: the CoinDesk 20 index, a broader barometer of the crypto market, recorded a 14% drop in one week.
Despite these massive sales, Germany still has a substantial portfolio. According to the data According to Arkham Intelligence, the country still holds 39,826 bitcoins, worth $2.2 billion.
This liquidation strategy has provoked mixed reactions within the crypto community. Justin Sun, founder of Tron, proposed an alternative solution by suggesting acquiring bitcoins off-market, in order to limit the downward pressure.
A debate on the future of cryptos in Germany
The management of this bitcoin stash raises fundamental questions about Germany's strategy towards cryptocurrencies. Experts, including those at Blockware Intelligence, call the massive liquidation of bitcoins a “major strategic mistake.”
Their main argument is based on the idea that a nation should prioritize holding scarce digital assets, rather than converting them into fiat currency.
This position is echoed within the German government itself. Joana Cotar, a prominent member of the Bundestag, has sharply criticized this approach. According to her, these sales risk compromising Germany's geopolitical position in the long term. Instead, she advocates keeping these bitcoins as a national strategic reserve, emphasizing their future potential.
The impact of the German decision could extend far beyond its borders, significantly influencing investor sentiment globally.
Furthermore, the remaining reserve of 39,826 BTC continues to exert considerable pressure on the market. Representing nearly 9% of the daily trading volume of bitcoin, it constitutes a sword of Damocles for the prices, fueling uncertainty about the future evolution of the crypto market.
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