According to CoinDesk, Germany continues to hold 29,286 BTC, valued at $2.2 billion, as per Arkham Intelligence. This amount represents nearly 9% of bitcoin's 24-hour trading volume, indicating potential selling pressure. Since mid-June, Germany has been reducing its bitcoin holdings, which has had a significant impact on the cryptocurrency market.
Earlier this year, the German Federal Criminal Police Office (BKA) seized 49,857 BTC from the operators of Movie2k.to, a privacy website last active in 2013. Since then, the government has sold over 10,000 BTC, exerting downward pressure on the cryptocurrency's market rate. The spot price of BTC has fallen by nearly 20% to $55,490 in four weeks, with prices dropping almost 13% in the past week alone. The CoinDesk 20 Index (CD20), a broader market measure, has also declined nearly 14% to 1,870 points in a week.
Last week, Tron founder Justin Sun proposed to buy BTC from the German government off-market to mitigate the negative impact on the spot price. Some observers believe that Germany's BTC sales are a strategic mistake that puts the country at a geopolitical disadvantage. The Blockware Intelligence newsletter's July 5 edition stated that it was a 'strategic blunder' for any nation-state to sell bitcoin holdings for fiat currency, which they can print at will. In contrast, acquiring Bitcoin requires a significant amount of physical energy due to its mining process and its limited supply of 21,000,000.