ALBAWABA - The government of Germany owns more than $2 billion in Bitcoin and has been selling lots of Bitcoins for weeks now which is driving cryptocurrency investors insane and is putting additional pressure on the fluctuating world’s famous cryptocurrency.
It is worth mentioning that last week the value of Bitcoin fell to its lowest levels in two months following a great peak witnessed this year exceeding $73K. Bitcoin price decreased by more than 7% marking $53.9K with a market cap of $1.09 trillion, CNBC reported.
However, according to CNBC, Germany’s bitcoin sales are not what concern crypto investors, the crypto world has been unstable since the collapse of Mt. Gox, which went bankrupt in 2014.
The German government might be the reason behind Bitcoin's major drop (Shutterstock)
The German government is selling Bitcoin
Investors and financial experts are blaming the major drop in Bitcoin on the acts of the German government as it began last month selling bitcoin through a wallet managed by the Bundeskriminalamt, also known as BKA or the Federal Criminal Police Office of the country.
The government sold $52 million worth of Bitcoin in June and an additional worth of $172 million last week which put the cryptocurrency under great pressure.
Why does Germany own Bitcoin?
Police officials in the state of Saxony announced the confiscation of approximately 50,000 bitcoins, worth $2.2 billion in January 2024.
The funds were seized from movie piracy site known as: "Movie2k.to" and were transferred to a wallet owned by the German Federal Criminal Police.
The German Federal Criminal Police Office owns around 32,488 bitcoins currently which is worth $1.9 billion after selling off a significant portion in the past few weeks.
The German government has not stated or reported anything on the matter up to this moment.
Bitcoin reached its closing price of $0.05 on July 18, 2010. Remarkably, on March 13, Bitcoin achieved its peak closing price of $73,083.50.
