Germany Loses $3 Billion Selling Bitcoin Before Rally
- Germany sold 49.858 BTC for $57.900 each
- Potential lost profit exceeds $3 billion in BTC
- The US government also lost billions from bitcoin sales.
Germany lost approximately $3 billion in profits by selling around 50 bitcoins before the cryptocurrency's recent rally. Between June 19 and July 12, the Saxony Central Office for the Custody and Use of Virtual Currencies, affiliated with the Dresden Public Prosecutor's Office, sold 49.858 BTC for an average price of $57.900 per unit.
The operation generated US$2,8 billion in assets that had been seized in the criminal case known as “Movie2k,” in an action conducted jointly with the Federal Criminal Police Office and Frankfurt-based Bankhaus Scheich Wertpapierspezialist AG.
With its recent appreciation, Bitcoin surpassed $120.000, reaching a new all-time high last Sunday, according to TradingView data. At the time of publication, the cryptocurrency was trading at around $120.700. Had the assets been held, they would be valued today at around $6 billion.
Germany's decision is reminiscent of similar incidents involving other public authorities. The United States government, for example, auctioned off more than 195.000 BTC over the past decade for just $366 million. Today, that amount would be valued at more than $23 billion, according to data compiled by Jameson Lopp, the House's director of security.
Even after these past sales, the United States still holds more than 198.000 BTC, estimated to be worth more than $24 billion, according to data released by Arkham Intelligence.
Government sales moves continue to spark debate within the industry about the timing and strategy for liquidating large amounts of Bitcoin. With the market surpassing $120, premature actions have been seen as decisions that result in significant loss of value to the public coffers.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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