CoinChapter – The German Government’s Mistake Regarding Bitcoin

NAIROBI (CoinChapter.com) — In just a few weeks, the German government has managed to reduce its 50,000 Bitcoin holdings to zero after relentless selling sent the cryptocurrency market into a tailspin.

However, with the German government having completed all of its sales, the price of Bitcoin, as well as the cryptocurrency market, has rebounded in response, rising by over 20% since then. Given that the price of BTC is higher now, here’s how much the German government’s holdings would have been if it hadn’t sold.

Sell ​​low, regret high – Germany’s $270 million failure

German government Bitcoin wallets are officially empty after a sell-off lasted more than three weeks. The Dresden public prosecutor’s office announced the successful conclusion of the sale of almost 50,000 BTC, which grossed $2.88 billion.

German authorities have ordered Frankfurt-based Bankhaus Scheich to sell bitcoins it held between June 19 and July 12.

According to the Dresden public prosecutor’s office, the bank allegedly claimed to have sold the bitcoins. in a “fair and sweet” mannerDespite the collapse in the price of Bitcoin, the government has continued to dump its reserves.

At the time the last tranche was unloaded, Bitcoin was hovering around $53,000, with an average sale price of around $57,000.

Ironically, if the German government had simply held on to its 50,000 BTC during the recovery, the value of the coins would have been significantly higher. With Bitcoin currently worth around $65,400, the holdings would have been worth $3.27 billion. That means the government lost 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 holds a large portion of the 50,000 Bitcoin, and sarcastically praised them for being “stupid“enough to handle this.

Bitcoin Bulls Have the Last Laugh

While the German government’s bitcoin sales were bearish at the time, the aftermath proved just how strong bitcoin is now. After the government’s wallet hit zero late last week, the price of bitcoin began to rebound, taking the entire cryptocurrency market with it.

Bitcoin went from trending around $53,000 to trading as high as $66,000, a 20% increase in just a few days. Market sentiment also changed dramatically, from extreme fear to greed in less than a week.

In a tweet on July 14, 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 little longer, it 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 get off: it’s a tough pill to swallow.

In short, selling Bitcoins in Germany is a typical example of what not to do in cryptocurrency trading. Hold on to your coins, folks, or you risk missing out on millions.