As a seasoned financial analyst with over a decade of experience in the market, I’ve witnessed numerous trends come and go. The recent sell-offs by the German government of its 50,000 Bitcoins is an interesting case study that highlights both the risks and rewards of holding cryptocurrencies.
As a researcher, I’ve observed that the German government managed to liquidate its Bitcoin holdings of approximately 50,000 coins within a few weeks through continuous sell-offs. The market took a hit due to these selling actions, but once the government was finished, both the Bitcoin price and the broader crypto market began to recover, experiencing a surge of over 20% since then. Considering the current Bitcoin price, let me calculate how much the German government’s holdings would be worth if they hadn’t sold.
German Government’s 50,000 BTC Would Be Worth $3.27 Billion
As a researcher examining the German government’s Bitcoin sales, I found that they continued offloading their coins even after the price had plummeted. In fact, by the time they had sold their last batch, the Bitcoin market was hovering around $53,000. Consequently, I estimated their average sell-off price to be roughly $57,000, resulting in a total realized value from the sale of approximately $3 billion.
As a financial analyst, I can tell you that if I, as the German government, had not sold any of the 50,000 Bitcoins we possessed and instead held onto them during the market recovery, the value of those coins in US dollars would have significantly increased. Currently, each Bitcoin is worth approximately $65,400. Thus, our initial holding would have been valued at around $3.27 billion.
Within the next few days, the value of the German government’s 50,000 Bitcoins would have increased by approximately $270 million if they had simply held onto them, instead of realizing this potential gain by selling earlier.
The German government’s decision to sell off their Bitcoin holdings didn’t go unnoticed and sparked significant criticism from German citizens. One critic, Jaona Cotar from the German Bundestag, voiced her disapproval in a post on X (previously Twitter). She expressed disappointment that Germany now owns no Bitcoins after the government made this sale.
“Here’s how many Bitcoins remain with Germany out of the total 50,000. Impressively, it takes a great deal of naivety to accomplish that.”
Bitcoin Bullish After Sell-Offs
The German government’s sale of Bitcoins during that period had a bearish impact on the market. However, the subsequent events have highlighted Bitcoin’s resilience and strength. Upon exhaustion of the government’s Bitcoin wallet last week, the price of Bitcoin started to recover, pulling the entire crypto market along with it.
As a crypto investor, I’ve witnessed an exciting price surge over the past few days. Just within Wednesday morning, the cryptocurrency’s value went from hovering around $53,000 to reaching highs of $66,000 – that’s a remarkable 20% price increase in a short span. Moreover, the market sentiment has noticeably shifted, moving from Extreme Fear to Greed within barely a week.
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2024-07-18 02:41