Bitcoin News Today: Germany's Bitcoin Gamble: A $5B Mistake or Masterstroke?

Germany Sold Its Bitcoin Early – But $5B More May Still Be Out There

Blockchain analytics firm Arkham Intelligence has identified an additional 45,000 Bitcoin (BTC), valued at nearly $5 billion at current market rates, that remains untouched in wallets connected to the defunct Movie2K piracy platform. This revelation has rekindled debates about Germany’s approach to handling seized digital assets and the potential financial implications of its recent decision to liquidate part of the Bitcoin seizure at what now appears to be a discounted rate [1].

The Movie2K case, involving a piracy site active since 2013, saw its operators arrested in 2019. In early 2024, German authorities described the seizure of nearly 49,858 BTC as a “voluntary transfer” by the site's operators. That batch was sold between June and July 2024 at an average price of $57,900, generating approximately €2.64 billion ($2.89 billion). However, Arkham noted that the newly identified 45,000 BTC—spread across over 100 wallets—has shown no movement since 2019 and was not included in the government’s initial statement or the emergency sale [1].

With Bitcoin’s price surging past $123,000 in recent weeks, the decision to sell earlier has come under scrutiny. Analysts have noted that had the government held onto the entire batch, it could have retained a significantly higher value. This has reignited calls for a shift in Germany’s approach to seized cryptocurrency, with some advocating for the establishment of a sovereign Bitcoin reserve strategy. German lawmaker and Bitcoin proponent Joana Cotar has previously argued that holding such assets could yield substantial long-term returns and position Germany among the top government holders of Bitcoin, alongside countries like Ukraine and the United States [1].

However, the Bundesbank has remained skeptical. In earlier remarks, Bundesbank President Joachim Nagel compared Bitcoin’s volatility to the speculative Tulip Mania of the 1600s, reiterating his view that it is not a suitable asset for national reserves. This stance contrasts with countries like El Salvador, which has integrated Bitcoin into its economic strategy, including the recent reallocation of its $678 million Bitcoin reserve into quantum-resistant wallets to enhance security while preserving transparency [1].

The discovery of the additional 45,000 BTC raises logistical and legal challenges. Arkham’s analysis suggests that the wallets are still under the control of Movie2K’s operators, despite years of inactivity. Any future attempt to seize or liquidate this batch would likely face complex regulatory and technical hurdles. Analysts warn that the market could react strongly to another large-scale government Bitcoin sale, as was observed in mid-2024 when the initial batch was sold, causing temporary selling pressure. The outcome of this situation could influence how other nations manage similar digital asset seizures in the future [1].

Source:

[1] Arkham Uncovers $5 Billion in Untouched Bitcoin From Germany's Movie2K Seizure (https://coingape.com/arkham-uncovers-5-billion-in-untouched-bitcoin-from-germanys-movie2k-seizure/)

[2] the German government has another 5B$ of Bitcoin to sell ... (https://www.reddit.com/r/Buttcoin/comments/1n9onos/breaking_the_german_government_has_another_5b_of/)