German Government Becomes Laughing Stock After Running Out Of BTC

Germany has emptied all its Bitcoin (BTC) holdings, prompting ridicule by pretty much everyone on social media. According to Arkham Intelligence, the official on-chain Bitcoin wallet for the German government now shows a balance of zero. This move signals the likely end of sell pressure by one of the largest economies in Europe. On-chain indicators suggest a potential local bottom is imminent.

What Happened

As of late Thursday, Arkham reported that the government held just 4,925 BTC (valued at $282.45 million). This is a significant decrease compared to the 50,000 BTC held in mid-June, originally seized via the movie piracy site Movie2k in January. Early Friday saw the government receiving 4,169 BTC back through exchanges like Kraken, Coinbase, and Bitstamp, before promptly redistributing 2,700 BTC by 5:00 AM ET.

By 10:00 AM, an additional 2,300 BTC was sent to Kraken, an unidentified address, and likely institutional deposit or over-the-counter trading services. Later in the day, the remaining 3,846 BTC ($223.8 million) was transferred to the institutional trading desk Flow Traders.

A Critical Error

This sale by Germany coincided with the U.S. government recently auctioning off seized coins and concerns over repayments to Mt. Gox creditors. Online, Bitcoin investors are both celebrating the sell-off and criticizing the decision by the German government to exchange coins for fiat currency.

Germany selling off their seized BTC could be seen as a significant strategic mistake in the coming decades, tweeted Reflexivity Research Co-Founder Will Clemente. Michael Saylor also subtly criticized the move, tweeting in German, Du verkaufst deine Bitcoin nicht (You do not sell your Bitcoin).

With the sell-off complete, on-chain analysts believe the current price of BTC represents an attractive entry point for new investors. Institutional investors have been accumulating Bitcoin at the fastest rate since March, suggesting confidence in buying opportunities. Meanwhile, short-term holders selling at a loss indicates peak market fear, potentially signaling a forthcoming price correction.