Germany's BTC Spree Continues: How Much Bitcoin Does the Government Still Have?

Bitcoin continues to bear the brunt of the massive selling pressure and uncertainty in the market. One factor apparently dragging its price down is the German government's BTC selling spree since last month.

Bitcoin continues to face strong selling pressure and uncertainty in the market.

One factor apparently dragging its price down is the German government’s BTC selling spree since last month.

However, analysts believe that the wallet address associated with the government will eventually run out of Bitcoin in its balance sheets.

By then, they hope that it will tame the market to prepare it for another possible bull run toward the coveted $100K per BTC target.

With that, one might wonder how much more Bitcoin does the central European nation still has.

Bitcoin Holdings of the German Government

Germany rose to become the third largest Bitcoin holder among governments when it acquired 49,858.88 BTC from the now-defunct movie piracy website Movie2k.to in January this year. According to the Saxony Police, the accused operator of the platform voluntarily surrendered the crypto assets as the person faced charges stemming from copyright and anti-money laundering violations.

The German government continued to hold on to its Bitcoin assets despite the coin peaking at $73,750.07 on March 14. By June 19, the nation’s crypto wallet address started showing signs of activity as it seemingly distributed the funds to several addresses it owned based on Arkham Intelligence data. From that day to the next, however, the government also began moving a total of 3K BTC to an unknown address and several crypto exchanges.

The outflows continued for several weeks until today. As of July 9, the German government once again added pressure to the crypto market with a series of outflows to two unknown addresses and crypto exchanges.

So far, the ownership of addresses “bc1qu3jdm4wz24laats8x80mldragmxzkmzcguzr4j” and “139PoPE1bKQam8QJjhVjYDP47f3VH7ybVu” have puzzled observers because they have been among the recipients of the German government’s outflows since it started the rather controversial whale transfers.

The German government’s main wallet address currently has around 22,846 BTC in its coffers. Although this is now only half of its initial holdings, it’s still worth a hefty sum of $1.31 billion based on the prevailing rate of $57,282 per BTC.

Criticism on Germany’s Bitcoin Whale Sales

Germany’s unrelenting large transfers have indeed gained the attention of investors and traders alike. As a result, even Bundestag member Joana Cotar has already called out their government’s decision to divest most of its Bitcoin assets.

The parliament member claimed that the incessant sale of her government’s BTC holdings is counterproductive and could negatively impact the crypto market in the long term. She instead urged the administration to study the potential of the digital asset as a national reserve.

The politician likewise encouraged her fellow lawmakers to join her “Bitcoin in the Bundestag” initiative for them to be educated about the advantages and utility of BTC. She expects the program to be instrumental in allowing her colleagues to craft more informed decisions and regulations about Bitcoin, crypto, and other digital assets in the future.

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