In mid-2024 and 2025, the German government liquidated its substantial Bitcoin holdings, totaling approximately 49,858 BTC, significantly impacting the market and drawing scrutiny from the crypto community.
This liquidation has led to price volatility and sparked debates about government asset management and the evolving role of cryptocurrencies in sovereign financial strategies.
Germany liquidated its Bitcoin holdings in mid-2024 and 2025, managed by the Federal Criminal Police Office and Saxon Central Office.
The sell-off has influenced market discussions on sovereign assets, potential financial gains, and global Bitcoin reserves.
Germany Offloads 49,858 BTC Without Public Input
Germany's liquidation of approximately 49,858 BTC in mid-2024 and mid-2025 has garnered significant attention. These actions were coordinated by the Federal Criminal Police Office and Saxon Central Office.
Entities involved included Bankhaus Scheich Wertpapierspezialist AG. The sale, executed without public discussion, did not involve institutional investors or grants, reflecting a procedural rather than strategic move.
Bitcoin Volatility and Community Resolve Post-Sale
The sales impacted the market with Bitcoin experiencing volatility—prices initially dropped but rebounded above $60,000. Analysts note the sales created fear but eventually strengthened cryptocurrency community resolve.
This action is a reminder of potential financial losses when public assets like Bitcoin are liquidated prematurely. Analysts spotlight liquidity impacts on markets and underscore the potential of better strategic handling. Miguel Morel, Founder of Arkham Intelligence, noted:
“The last thing I would have expected is that they would just go to five different exchanges and start market selling. The fact that they’re going to so many different exchanges just reads like they’re just trying to get as much liquidity from each order book as possible...” source.
Historical Government Sales Mirror Germany's Miss
Historically, government Bitcoin sales, like those by the US, have stirred similar debates on taxpayer loss. Many governments face criticism for missed opportunities akin to Germany's decision.
Outcome analyses suggest Bitcoin appreciation following liquidation as traders absorb excess supply. Observers predict robust market support, with stronger demand cycles offsetting short-term distress.