Within a few weeks, the German government managed to reduce its 50,000 Bitcoin holdings to zero after a sustained selloff that sent the cryptocurrency market into a tailspin. However, as the German government ended all the selling, the price of Bitcoin, and the cryptocurrency market, rebounded in response, rising by over 20% since then. Since Bitcoin is now worth more, here’s how much the German government would have if it hadn’t sold.
The 50,000 BTC issued by the German government will be worth $3.27 billion
The German government continued to dump bitcoins even after the price collapse, and by the time the last batch of coins was sold, the price of bitcoin was heading towards $53,000. Accordingly, it set the average selling price at around $57,000, bringing the total value of the sale to around $3 billion.
Now, if the German government hadn’t sold any of its 50,000 bitcoins and held onto them until the recovery, the dollar value of the coins would have been significantly higher. Given the current value of bitcoin at the time of writing, which is around $65,400, the holdings would be worth $3.27 billion by now.
This means that in less than a week, the value of the 50,000 bitcoins owned by the German government would have increased by $270 million, just by holding them. This also shows the potential for profit that the government missed by selling them too early.
The government’s sale did not go unnoticed, and it sparked a lot of criticism from German residents. One of those who criticized the move was Juna Kotar, a member of the German parliament. In a message on X (formerly Twitter): mailKotar rebuked the German government for its decision to sell Bitcoin, lamenting the fact that the country now owns exactly 0 Bitcoin.
“This is how many bitcoins are left in Germany out of 50k. Congratulations, you must be that stupid to be able to do this,” X’s post read.
Bitcoin price rises after heavy selling
While the German government’s Bitcoin selloff was bearish at the time, the aftermath has shown just how powerful Bitcoin is today. After the government’s wallet hit zero late last week, the price of Bitcoin has begun to recover, leading to a recovery in the entire cryptocurrency market.
Bitcoin has surged from around $53,000 to $66,000 in the early hours of Wednesday morning, a 20% price increase since then. Market sentiment has also taken a dramatic turn, jumping from extreme fear to greed in less than a week.
Featured image created using Dall.E, chart from Tradingview.com