According to Arkham, the blockchain intelligence company, Germany missed more than 2 billion dollars in Bitcoin profits after it sold its Bitcoin holdings back in 2024.
“German Government (BKA)The labeled crypto wallet has sold 49.858 bitcoin (BTC) Over $2.89 Billion at an Average Price of $57,900 multiple transactions During June and July 2024.
Arkham Crypto Intelligence Platform estimates that selling Bitcoin early to the German Government cost over $2.35 Billion.
“If they had held it, their BTC would now be worth $5.24B,” Arkham said In a post on May 19, X noted that Bitcoin had risen by more than 80% in value since the purchase.
CoinMarketCap reported that Bitcoin had a value of more than $104,700 at the time this publication was made.
Related: Justin Sun offers to buy German gov’t’s $2.3B Bitcoin stack to minimize market impact
First raised eyebrows was the German-labelled wallet speculation of a potential sell-off On June 19, 2024 it completed a transfer of 6,500 BTC worth more than $425 million.
It’s believed the wallet, which originally contained around 50,000 BTC was taken from Movie2k operators, an now defunct torrent film website.
Related: Bitcoin bottom signal? German gov’t runs out of BTC to sell
German government rushes sale to maximize liquidity
Miguel Morel is the founder of Arkham Intelligence. He says that wallet selling patterns are indicative of hasty sales, which were not optimized to have the least impact and maximum profitability.
“The last thing I would have expected is that they would just go to five different exchanges and start market selling,” Morel, who spoke to Cointelegraph at EthCC2024 in an exclusive interview, said:
“The fact that they’re going to so many different exchanges just reads like they’re just trying to get as much liquidity from each order book as possible[…]”
It is possible that the reports about the German government liquidating Bitcoins contributed to the Bitcoin downtrend more than their volume.
Bitcoin’s value recovered over the psychological $60,000 mark on 14th July. A day after the German-registered government wallet ran out, investors were no longer concerned about any further sales pressure.
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Source: cointelegraph.com
