Germany’s decision to sell nearly 50,000 Bitcoin in July at $53,000 per coin resulted in an estimated loss of $2.015 billion, as Bitcoin reached a new all-time high of $93,434.
At current prices, the 49,858 BTC sold could have been worth about $4.57 billion. Bitcoin assets were sold between June 19 and July 12, generating about $2.8 billion for German authorities. According to German domestic law, seized assets must be sold if their market value fluctuates by more than 10%, to mitigate risks from market volatility.
Significant Bitcoin stocks in the country were confiscated from Movie2k.to, a movie piracy website.
In January, German police confiscated 50,000 BTC from the pirate site, marking “the largest Bitcoin seizure by law enforcement in the Federal Republic of Germany to date,” according to a press release.
In mid-June, the German government began gradually liquidating more than 10,000 BTC, putting downward pressure on the cryptocurrency’s market price. on July 12, German authorities executed a number of transactions, transferring a total of 3,200 Bitcoin to several platforms, including Bitstamp, Kraken and Coinbase, with each platform receiving 400 BTC.
In addition, 1000 BTC and 500 BTC were sent to two unknown addresses. Later that day, the German government sold the last of its Bitcoin holdings, including 3093 Bitcoins sent to a wallet address.
However, four months later, Bitcoin and other markets surged after Donald Trump ‘s recent election victory, bolstering optimism and driving asset prices to record levels.
Bitcoin’s rally coincides with speculation about favorable regulatory changes in the United States, which further fueled investor enthusiasm. Meanwhile , Joana Cotar, a German member of parliament, has raised concerns about the potential adoption of Bitcoin by the United States as a strategic reserve asset.
She warned that such a move could cause a domino effect among European countries. “If the United States buys Bitcoin as a strategic reserve asset, all European countries will get FOMO,” shesaid – Cotar noted.
Bitcoin’s rise fueled by more than just Trump’s victory
Bitcoin’s recent rise has made headlines, but analysts say the main driver is not the outcome of the US presidential election.
While Donald Trump ‘s victory may have sparked optimism about a Bitcoin-friendly administration, experts say the real catalyst is the cryptocurrency ‘s exceptional post-halving supply dynamics in April.
“Yes, the new administration has provided the final catalyst… But that’s not the main story here. The main story is that we are more than 6 months post-halving,” wrote Jesse Myers, co-founder of Onramp Bitcoin, in a post on X.
Bitcoin’s halving has reduced block rewards from 6.25 BTC to 3.125 BTC, effectively lowering the rate at which new Bitcoins enter circulation. Myers stressed that this reduction in supply is causing a “supply shock” that limits availability at current price levels.
