The German government recently made headlines for successfully reducing its Bitcoin holdings from 50,000 BTC to zero through a series of sell-offs that had a significant impact on the crypto market. However, with the government’s selling spree now over, the Bitcoin price has rebounded by over 20%, bringing relief to the market. As a result, many are now wondering how much the German government’s holdings would be worth if they had chosen to hold onto their Bitcoin instead of selling.
If the German government had decided to hold onto its 50,000 BTC and ride out the market fluctuations, the value of their holdings would be substantially higher than the $3 billion they realized from the sell-offs. At the current BTC price of around $65,400, the government’s Bitcoin holdings would be worth an impressive $3.27 billion. This means that in just a matter of days, the government could have potentially earned an extra $270 million by simply holding onto their Bitcoin.
The decision to sell off such a large amount of Bitcoin did not go unnoticed and has sparked criticism from German residents, including members of the Bundestag like Jaona Cotar. In a post on X (formerly Twitter), Cotar expressed disappointment in the government’s choice to completely liquidate its Bitcoin holdings, leaving the country with no BTC left in its reserves. The move has been described as shortsighted and unnecessary, with many questioning the wisdom of selling off such a valuable asset.
Despite the initial bearish sentiment surrounding the government’s sell-offs, the aftermath has shown the resilience of Bitcoin and the overall crypto market. Following the depletion of the government’s Bitcoin wallet, the price of BTC began to rebound, reaching highs of $66,000 in just a few days. This 20% increase in price has also been accompanied by a shift in market sentiment from Extreme Fear to Greed, indicating renewed confidence and optimism among investors.
Overall, the German government’s decision to sell off its Bitcoin holdings may have cost them potential profits in the short term, but the rebound in the market suggests that Bitcoin remains a strong and valuable asset. As the crypto market continues to evolve and mature, it is essential for governments and institutions to carefully consider their investment strategies and the long-term implications of their decisions in order to maximize returns and minimize risks.
