- Germany has halved its holdings of Bitcoin in recent weeks of active trading
- According to Arkham Intelligence, Germany currently holds 23,800 BTC worth ~$1.3B
- Germany’s strategy regarding Bitcoin remains unclear
Watching the German government’s active steps towards Bitcoin trading, we’ve seen many mixed signals and big trades. Learn the details in our previous articles on Germany’s Bitcoin Moves.
Of course, it will ask us to keep paying close attention, but it has already led to a landmark point that needs to be noted.
Since June of active trading, Germany has been left with half of its Bitcoin reserves, namely 23,800 BTC.
Half the Reserves Is a Lot. When Would It Make Sense?
As we wrote in previous articles, several scenarios could explain the reasons for such decisions.
Germany realizes Bitcoin’s true potential as a reserve and strategic asset for protecting the national currency from the influence of the dollar and inflation. In an unobvious way, it seeks to create Bitcoin volatility, earn extra money on it now, and later massively buy it back at the most favorable price.
Or does not realize and just tries to get as much profit as possible on the volatility, which itself creates, sometimes making not the most successful transactions as yesterday buying at a higher price than sold in a few hours.
And here’s the thing: Giving away an entire half of a highly volatile asset whose price could rise very shortly may seem like an ambiguous initiative if we accept Germany’s desire to exploit Bitcoin’s market potential only—if Germany even thinks Bitcoin will collapse completely in a matter of months.
However, it could be a very good initiative if we consider a scenario where the more massively Germany throws its Bitcoins on the market – the more it lowers the price. It creates the chance for buyback, not only regaining their position among major Bitcoin holders but even moving up in the rankings close to the US and China.
UPDATE: Just recently Germany sold additional 6306 $BTC, now holding 22,847 $BTC worth ~$1.32B.
This is a very important dynamic, which we are monitoring closely. Join our Legends Community to stay one step ahead of world and crypto-economic events and get the most up-to-date, trusted, and grounded information from the world of finance and crypto!
