The The German government has sold all its Bitcoin (BTC). in just two weeks. The reason for the significant Bitcoin dump was revealed in a recent statement from the Saxony Central Office for the Protection and Realization of Virtual Currencies.
Why Germany Sold All Its Bitcoin
In a blog post published on July 16, the Saxon Central Office and Frankfurt Bankhaus Scheich Wertvuurspezialist AG, a German securities trading bank, announced that they have successfully the sale completed of approximately 49,858 BTC. From June 19, 2024, the German government started selling its massive Bitcoin reserves and officially closed the sale on July 12, 2024.
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The government announced that the sale proceeds amounted to 2.63 billion euros, while the money remained temporarily secured for the criminal proceedings related to the ‘movie2k’ complex. The backstory behind the German government significant Bitcoin holdings It involves a seizure of digital assets from movie2k, an infamous and now defunct movie piracy website. Earlier in January 2024, the government made 50,000 BTC seizedworth more than €2.1 billion at the time, from the operator of the movie2k website.
Unlike some global jurisdictions that might hold the seized digital assets, German law mandates their liquidation. This mandate is part of an “emergency sale” under Article 111p of the Code of Criminal Procedure. As a result, the Dresden Public Prosecutor’s Office had no choice but to do so sell their Bitcoin stash which was transferred by the suspect at short notice.
Germany’s Bitcoin sales were also driven by its legal obligation to do so liquidate valuable assets before the completion of ongoing criminal proceedings, especially where there is a threat or risk of significant losses. Given Bitcoin’s notorious volatility and its propensity for rapid price fluctuations, the threat of loss was ever-present and therefore necessitated the sale.
In addition, any speculation on prices or waiting for the rising value of the seized assets by the prosecuting authority is strictly prohibited in the event of an emergency sale, which is expected to be carried out as soon as possible. This is because the current value of Bitcoin and other price-influencing circumstances are not relevant in deciding where and when to conduct a distress sale.
Germany conducts market-friendly BTC sales
During its blog post, Saxony’s Central Office for the Protection and Realization of Virtual Currencies announced that the government had carried out a “market-friendly and appropriate sale of Bitcoins.” The government had taken the initiative multiple BTC dumps in small tranches over a period of approximately three and a half weeks, taking into account how substantial BTC sell-offs can significantly impact the market.
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According to the government, approximately 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 approximately €39,400. Looking ahead, the price of Bitcoin was not seriously affected by the German government’s substantial, exalted sell-out.
A crypto analyst, Simon Dedic, revealed in a X message that the price of BTC has increased by almost 23% since then The German Bitcoin Dump and is now trading at a higher level than on June 19, when the government started transferring money.
Featured image created with Dall.E, chart from Tradingview.com
