The German government’s Bitcoin holdings have experienced a 90% reduction, with Bitcoin (BTC) falling to break the $60,000 zone twice in 48 hours.
This sell-off has led to increased market volatility and investor concern. In January, the German authorities seized a substantial stash of Bitcoin, totaling 49,860 BTC, following a crackdown on a film pirating website.
Since then, the government has offloaded over 34,410 BTC valued at approximately $2.42 billion to various crypto exchanges, marking a sharp 90% drop from the initial 49,857 BTC holding to just 6,146 BTC.
Currently, the government Bitcoin wallet holds only 6,146 BTC, valued at around $350 million at the current price of $57,211.
Historically, large-scale sell-offs by government entities can lead to increased market activity and potential price fluctuations. However, the German government’s strategic distribution of BTC across different platforms may help mitigate sudden and extreme price swings.
Bitcoin has entered the extreme fear zone for the first time in 18 months, with the Fear and Greed Index dropping to 25. As Germany’s Bitcoin liquidation nears its end, market analysts predict the selling spree could conclude by Friday or early next week.
