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- Germany dumped nearly 50K BTC in 2024, missing out on $2B in gains.
- Arkham found another 45K BTC, worth $5B, linked to Movie2K.
- The government faces pressure to hold instead of selling immediately.
Germany’s handling of its Bitcoin (BTC) reserves continues to draw scrutiny after blockchain analytics firm Arkham revealed that authorities may have missed 45,000 BTC, worth around $5 billion, linked to the movie piracy site Movie2K.
This comes nearly a year after German authorities sold 49,858 BTC in mid-2024, a move that briefly weighed on the market. At the time, Bitcoin traded below $60,000, but just months later, it rallied to over $124,000. The decision meant Germany pocketed about $2.89 billion but missed out on more than $2 billion in potential gains had it held longer.
Arkham’s Findings: $5B in Untapped BTC
According to Arkham, the additional Bitcoin is spread across more than 100 wallets and “most likely still under the control of Movie2K operators.” If seized, the coins could add another massive stash to Germany’s holdings.
The discovery raises questions about how German authorities will handle the potential asset. Some lawmakers have already called for a strategic Bitcoin reserve, arguing that selling too quickly not only reduces potential long-term returns but also exerts downward pressure on the market.
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Will Germany Repeat Its Mistake?
In 2024, the government’s rapid liquidation of seized Bitcoin coincided with a five-month consolidation period for BTC, during which the asset dropped around 25%. Critics argue that the sale not only hurt taxpayers but also destabilized the market.
With Bitcoin now trading above $100,000, the dilemma is clear: should Germany seize the assets and hold them as part of a long-term digital reserve, or repeat its previous approach and sell into strength?
A Critical Decision Ahead
The discovery of 45,000 BTC worth $5 billion presents Germany with a second chance to rethink its Bitcoin strategy. Whether the government chooses to build a reserve or offload the coins immediately could have far-reaching implications—not just for its balance sheet, but for the broader crypto market.
The central question remains: Will Germany learn from its 2024 misstep, or once again dump Bitcoin and risk dragging prices down?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
