Originally published on: July 21, 2024
Germany recently missed out on an additional $124 million in profits by selling its Bitcoin holdings too soon. The Saxony state government completed the sale of 50,000 BTC seized from movie piracy website movie2k, generating $2.87 billion. Despite securing a profit of over $740 million compared to the acquisition cost, Bitcoin prices surged by 16.55% right after the sale, driven by recent events including an assassination attempt on former US president Donald Trump.
The highest opportunity for maximum returns was in March when BTC reached a record high of around $74,000. A theoretical sale at that time could have yielded $1.5 billion in profits for the state. Additionally, a 12% decline in BTC prices during the German government’s sales also contributed to the missed profits.
The Dresden Public Prosecutor’s Office ordered the emergency sales under the impression that Bitcoin’s value might drop by more than 10%. The intention was to secure funds for criminal proceedings against movie2k, emphasizing that it was illegal for enforcement agencies to speculate on the value of seized items.
CoinShares researcher James Butterfill noted a rising demand for Bitcoin among ETF and fund investors during the German government’s sales. The US government and nations like El Salvador are also involved in Bitcoin transactions, with talks of the US using Bitcoin for its strategic reserve as soon as 2028.
Investors should conduct their own research before making any investment decisions as every move involves risks. Stay informed with critical insights on investment opportunities by subscribing to the Markets Outlook newsletter.
