Behind the continuous selling of coins, has cryptocurrency become a strategic reserve for various countries?
Editor’s Note:
In recent years, with the rapid development of cryptocurrencies, Bitcoin has gradually become an important part of the global financial market. As a decentralized digital currency, Bitcoin has not only attracted the attention of a large number of investors, but also begun to enter the vision of governments around the world. As one of the world's economic powers, Germany's recent series of Bitcoin operations has attracted widespread attention. This article explores in detail the background, process and impact of the German government's recent large-scale sale of Bitcoin, and has sparked heated discussions on whether Bitcoin should be held as a strategic asset.
Should governments hold Bitcoin as a strategic asset?
The German government has been actively selling large amounts of Bitcoin for weeks, causing the value of the global cryptocurrency market to continue to decline. This strategic move is a key factor in Bitcoin's recent sharp price drop, which last Friday saw the price of Bitcoin fall to its lowest level since February 2024.
Seizure and Sales Schedule
In mid-January, police in the German state of Saxony seized nearly 50,000 bitcoins, valued at about $2.2 billion at the time, from the now-defunct movie piracy website Movie2k.to. The massive bitcoin hoard, managed by Germany’s Federal Criminal Police, has attracted widespread attention for its size and legal implications.
Despite recent sales, Germany’s Federal Criminal Police still holds approximately 32,488 Bitcoins, currently valued at approximately $1.9 billion.
Detailed sales data
Throughout June and July, Germany’s Federal Criminal Police Office (BKA) gradually sold off some of its Bitcoin reserves. In June, 900 Bitcoins were sold for a total of approximately $52 million, followed by another 3,000 Bitcoins worth approximately $172 million and another 2,739 Bitcoins worth approximately $155 million.
Impact on market sentiment
James Butterfill, head of research at CoinShares, noted that while the actual impact of these sell-offs on the market was “relatively small,” they significantly affected market sentiment. Despite these sell-offs, Bitcoin has still gained 89% in value over the past year, reflecting the cryptocurrency's high volatility amid regulatory actions.
The strategic reserve debate
The decision to sell Bitcoin has sparked controversy. German Bundestag member Joana Cotar criticized the government's strategy and advocated holding Bitcoin as a strategic reserve currency. Cotar's views reflect an ongoing debate within German politics about the long-term effects of divesting such a valuable digital asset.
Future Impact
As Germany continues to explore its cryptocurrency holdings, global markets are watching closely. The remaining Bitcoin reserves held by the BKA remain a focus for investors and regulators, influencing discussions about digital asset management and financial strategies.
Germany’s positive stance on Bitcoin sales highlights a broader debate around digital asset management and government financial strategies. As market reactions and political discussions continue, the impact of these decisions is not limited to domestic, but also has a profound impact on global cryptocurrency markets and investor sentiment.
【Disclaimer】The market is risky, so be cautious when investing. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions in this article are suitable for their specific circumstances. Investing based on this information is at your own risk.