Bitcoin (BTC) recently crashed to a four-month low, losing more than 25% from its all-time high of $73,135 reached on March 13, erasing billions and causing a broader cryptocurrency market downturn.
BTC is currently trading at $55,291 after erasing 3.06% over the past 24 hours, adding to the losses of 10.11% in the previous seven days.
BTC 6-month price chart. Source: Finbold
Since its March 13 high of $1.4 trillion, the flagship digital asset has lost $350 billion from its market cap, as per the latest data retrieved by Finbold from CoinMarketCap.
Most recent sale of 547 BTC by the German Government. Source: Arkham Intelligence
Over the past ten days, 6,625 Bitcoins have been sold for a total profit of $397 million, leaving the German government with 39,816 Bitcoins in its reserves worth $2.2 billion.
Finbold first warned that the German government could be offloading their Bitcoin seized holdings on June 21, stating that it had moved over 1,700 BTC worth $108 million at the time.
German MP complains about BTC sales
Bundestag member Joana Cotar criticized the German government’s recent decision to sell a substantial portion of its Bitcoin holdings.
In a series of tweets, Cotar contrasted this move with discussions in the U.S., where Bitcoin is considered a strategic reserve currency.
Statt #Bitcoin als strategische Reservewährung zu halten, wie es in den USA bereits debattiert wird, verkauft unsere Regierung im großen Stil. Ich habe @MPKretschmer, @c_lindner & @Bundeskanzler @OlafScholz darüber informiert, warum dies nicht nur nicht sinnvoll, sondern… pic.twitter.com/v9FpzmfLbp
— Joana Cotar (@JoanaCotar) July 4, 2024Addressing her concerns to Saxony’s Minister, President Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz, Cotar urged them to rethink the strategy.
Cotar emphasized the decision’s counterproductive nature and invited the officials to attend an upcoming lecture event titled “Bitcoin Strategies for Nation States” on October 17.
Is Germany dumping its Bitcoin?
The narrative among the cryptocurrency community suggesting that the German government’s recent sale of Bitcoin caused the market crash may be inaccurate.
Notably, a significant portion of the coins sent to exchanges yesterday were subsequently returned to the same wallets from those exchanges, ‘and the time for selling isn’t right, so this likely isn’t them,’ according to developer Samson Mow.
The narrative that the German government just dumped the coins on the market and caused this crash is completely inaccurate.In fact you see that a large amount of coins that were sent out yesterday to exchanges… came back from exchanges. pic.twitter.com/y4J8cWfTIn
— WhalePanda (@WhalePanda) July 5, 2024This could mean that the German government revised its previous decision to sell Bitcoin at the current time, and market conditions.
