This German government sells all its Bitcoins (BTC) in just two weeks. The reason for the significant decline in Bitcoin was revealed in a recent statement by the Saxon Central Office for the Protection and Realization of Virtual Currencies.
Why Germany Sold All Its Bitcoins
IN blog post In a statement published on July 16, the Saxony Central Office and Frankfurt Bankhaus Scheich Wertpapierspezialist AG, a German securities trading bank, announced that they had successfully completed the sale was finalized approximately 49,858 BTC. As of June 19, 2024. German government began selling off its massive Bitcoin reserves, officially ending the sale on July 12, 2024.
The government revealed that the proceeds from the sale amounted to €2.63 billion, and the funds were temporarily secured for criminal proceedings related to the “movie2k” elaborate. The story behind the German government significant Bitcoin resources includes the seizure of digital assets from movie2k, a well-known and now defunct movie piracy website. Earlier, in January 2024, the government 50,000 BTC confiscatedworth over 2.1 billion euros at the time, from the operator of the website movie2k.
Unlike some global jurisdictions that could keep seized digital assets, German law orders their liquidation. This order is part of an “emergency sale” under Article 111p of the Code of Criminal Procedure. As a result, the Dresden General Prosecutor’s Office had no choice but to sell your Bitcoin stockpile which was submitted by the accused at low notice.
Germany’s sale of bitcoins was also dictated by a legal obligation liquidate valuable assets before the conclusion of ongoing criminal proceedings, in particular where there is a threat or risk of suffering a significant loss. Given Bitcoin’s known volatility and its tendency for wild price swings, the risk of loss was always present, necessitating the need to sell.
In addition, any price speculation or waiting for the value of seized assets to augment by the law enforcement agency is strictly prohibited in the event of an emergency sale, which is to be carried out as soon as possible. This is because current value of bitcoin and other circumstances affecting price are not relevant when deciding where and when to conduct a crash sale.
Germany conducts market-friendly BTC sales
In a blog post, the Saxon Central Office for the Protection and Realization of Virtual Currencies revealed that the government conducted a “market-friendly and appropriate sale of Bitcoins.” The government initiated many btc airdrops in petite tranches over a period of about three and a half weeks, given how significant BTC sell-offs can significantly impact the market.
According to the government, around 49,858 BTC were transferred on January 16, 2024, representing a total value of €1.96 billion at the time, with an average purchase price of around €39,400. Looking ahead, bitcoin price did not suffer significantly from the share sell-off conducted by the German government.
Cryptocurrency analyst Simon Dedic revealed in Posts X that the price of BTC has increased by almost 23% since German Bitcoin Airdrop and is currently trading at a higher level than on June 19, when the government began transferring funds.
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