German Government’s Bitcoin Sell-Off Ends with Market Rally and Criticism

After weeks of relentless selling, the German government sold off the final tranche of its Bitcoin holdings last Friday. Surprisingly, the market responded with an immediate rise.

What Happened: The German government had been offloading nearly 50,000 Bitcoins recovered from asset seizures over the past three weeks. This significant selling pressure weighed heavily on the price of the digital currency, which struggled to break above $60,000 and even dropped to a four-month low of $54,000.

However, in a twist of events, the market rebounded strongly just a day after the government exhausted its Bitcoin supply. Since then, Bitcoin, often referred to as "King Crypto," has surged 15%, breaking beyond $65,000.

If the German government had held onto their Bitcoin stash, it would be worth $3.29 billion today. To put this figure in context, it exceeds the GDPs of Bhutan and Gambia, according to Trading Economics. German lawmaker Joana Cotar had previously criticized the large-scale selling of state-owned Bitcoin as “insensible and counterproductive.”

She suggested that Bitcoin could be used as a strategic reserve currency, a concept under consideration in several countries, including the U.S. Following the complete liquidation of Bitcoin holdings, Bundestag member Cotar sarcastically remarked, "Congratulations, you have to be that stupid to be able to do that."