German Government Sells BTC at $57K, Misses $2.3B Profit Opportunity
The German government sold 49,858 Bitcoin (BTC) seized from the Movie2k piracy case in June and July 2024 at an average price of $57,900 per BTC, generating $2.89 billion in revenue. According to blockchain intelligence firm Arkham, this sale occurred before a significant rally in Bitcoin prices, resulting in a missed opportunity of about $2.35 billion—since the holding’s current value would exceed $5.24 billion after an 80% price surge. The government sold its Bitcoin reserves rapidly across several exchanges, prioritizing immediate liquidity over maximizing profit. The large-scale liquidation heightened speculation and volatility in the crypto market, with traders concerned about ongoing sell pressure. However, after the official holdings were depleted, Bitcoin rebounded above $60,000, easing those fears. Experts criticized the government’s approach for lacking a strategic plan to reduce market impact and maximize returns, highlighting the importance of tactical asset management when handling large institutional or government crypto holdings.
Neutral
The direct sell-off by the German government created short-term volatility and downward pressure on Bitcoin prices, fueling market uncertainty during the period of liquidation. However, once the government finished its sell-off, the market stabilized and Bitcoin rebounded above $60,000. While the news may have caused temporary bearish sentiment, its conclusion eliminated immediate oversupply concerns and allowed for price recovery. In the long term, the event highlights the potential risks and lost opportunities when large crypto holders do not adopt strategic approaches, but with government BTC sales concluded, there is no longer additional sell pressure, rendering the overall impact neutral for BTC price.