German Government’s Bitcoin Blunder – A $270 Million Mistake
NAIROBI (CoinChapter.com) — In a few weeks, the German government successfully reduced its 50,000 Bitcoin holdings to zero after non-stop sell-offs that sent the crypto market spiraling.
However, with the German government done with all its selling, the Bitcoin price, as well as the crypto market, has rebounded in response, rising over 20% since then. Since the BTC price is higher now, here’s how much the German government’s holdings would be if it had not sold.
Sell Low, Regret High – Germany’s $270 Million Oopsie
The German government’s Bitcoin wallets are officially empty after a sell-off that lasted more than three weeks. The Dresden Public Prosecutor’s Office announced the successful completion of the sale of close to 50,000 BTC, which netted $2.88 billion.
German authorities enlisted Frankfurt-based Bankhaus Scheich to sell the bitcoins in their possession between June 19 and July 12.
According to the Dresden Public Prosecutor’s Office, the bank claimed to have sold the bitcoins in a “fair and gentle” manner. Despite Bitcoin’s price crashing, the government continued to dump its stash.
By the time the last tranche was offloaded, Bitcoin was hovering around $53,000, with an average sell-off price of approximately $57,000.
In a twist of irony, if the German government had simply held onto its 50,000 BTC during the recovery, the value of the coins would be significantly higher. With Bitcoin currently priced around $65,400, the holdings would have been worth $3.27 billion. This means the government missed out on an additional $270 million by selling prematurely.
Joana Cotar, a member of the German Bundestag, criticized the government for its decision to sell BTC, lamenting that the country now holds exactly zero Bitcoin. Cotar posted on X, stating that Germany still has many of the 50,000 Bitcoins, and sarcastically congratulated them for being “stupid” enough to manage that.
Bitcoin Bulls Laugh Last
While the German government’s Bitcoin sell-offs were bearish at the time, the aftermath has proven how strong Bitcoin currently is. Following the government’s wallet reaching zero at the end of last week, the Bitcoin price began to rebound, taking the entire crypto market with it.
Bitcoin has surged from trending around $53,000 to trading as high as $66,000, a 20% increase in just a few days. Market sentiment has also shifted dramatically, jumping from Extreme Fear to Greed in less than a week.
In a July 14 tweet, crypto enthusiast Captain Faibik noted that Bitcoin bulls are eyeing a crucial resistance level at $60,000. A breakout there could propel prices to $70,000 and beyond. The irony here is thick; if only the German government had held on a bit longer, they could have ridden this bullish wave.
As Bitcoin continues to climb, Germany’s missed opportunity becomes even more glaring. Imagine watching a train speed away just as you decide to hop off—it’s a tough pill to swallow.
In summary, Germany’s Bitcoin sale is a textbook example of how not to trade crypto. Hold on to your coins, folks, or you might miss out on millions.
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