Germany Left with Less Than $1 Billion in Bitcoin for Sale
Germany has significantly reduced its Bitcoin holdings to less than $1 billion as of Wednesday, following a rapid selloff that escalated over the past two days. This move saw the German government transferring substantial amounts of Bitcoin from its wallets to various crypto exchanges and market markets, marking a significant decrease from holding approximately $3.46 billion in BTC just a month ago.
Arkham Intelligence data reveals that the German government currently possesses 13,733 BTC, valued at $792 million, compared to 49,860 BTC a month ago. The government’s strategy to liquidate a significant portion of its digital assets has led to the transfer of around $2 billion worth of Bitcoin to exchanges and market makers within the last week alone.
While the transferred assets may not have been completely liquidated yet, it indicates the government’s intention to divest from the cryptocurrency. Despite this selloff, analysts at investment firm Bernstein remain bullish on Bitcoin, projecting a price target of $200,000 by 2025, $500,000 by 2029, and exceeding $1 million by 2033.
Bernstein’s optimistic outlook is underpinned by Bitcoin’s unique demand and supply dynamics, particularly the four-year halving cycle. The analysts pointed out that Bitcoin’s price typically starts to rise after the quadrennial halving, as less new BTC enters the market and sell pressure from miners increases.
The success of spot Bitcoin ETFs in the United States has further reinforced Bernstein’s confidence in Bitcoin’s future. The firm highlighted that a significant portion of ETF flows are coming from self-directed retail investors via broker platforms, indicating substantial potential for institutional adoption.
Edited by Andrew Hayward
