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The German government seized 50,000 Bitcoin and recently sold 3,000 BTC, but now holds over $3 billion in BTC, with $1.1 billion unrealized profit from the Bitcoin price surge.
According to Ki Young Ju, Founder & CEO of CryptoQuant, the German government seized 50,000 Bitcoin, selling approximately 3,000 BTC. Notably, the recent surge in Bitcoin prices has led to a $1.1 billion unrealized profit, pushing the value of Germany’s remaining Bitcoin holdings to $3.24 billion.
🇩🇪 Germany seized 50K #Bitcoin and has sold around 3K BTC.
The surge in $BTC price has resulted in a $1.1 billion unrealized profit, increasing the value of their current holdings to $3.24 billion. pic.twitter.com/ZPeDZobYlL
— Ki Young Ju (@ki_young_ju) June 20, 2024
The chart by the CryptoQuant founder dubbed “BTC Unrealized Profit: German Government (BKA)” shows a correlation between Bitcoin’s price and the unrealized profit of the German government’s holdings. As Bitcoin’s price increases, so does the unrealized profit, particularly evident from January 2024 onwards.
Analysis of German Government Bitcoin Holdings
It is important to note that Germany’s Bitcoin holdings are now the fourth-largest among various governments, holding 50,000 BTC. This amount places Germany behind the United States, China, and the United Kingdom in terms of total Bitcoin holdings.
Comparatively, the United States holds the largest amount with 213,246 BTC, valued at $13.7 billion, followed by China with 190,000 BTC at $12.2 billion. The United Kingdom holds 61,000 BTC, valued at $3.9 billion. Germany’s supply ratio of 0.253% reflects its influence in the Bitcoin market, despite being smaller than the top holders.
Specifically, Ki Young Ju’s post highlights that China likely sold a significant portion of the seized Bitcoins in 2019, as PlusToken holdings were transferred to Chinese exchanges. However, the Chinese government has not officially confirmed these actions.
China likely sold most seized Bitcoins in 2019 as Plustoken holdings flowed to Chinese exchanges, though the government hasn't announced it yet. (h/t @ErgoBTC) pic.twitter.com/tQzUj2QYzx
— Ki Young Ju (@ki_young_ju) June 20, 2024
Bitcoin Transfers Spark Selloff Concerns
The recent sale by the German government follows the movement of a significant number of tokens. Per The Crypto Basic, the government transferred 6,500 Bitcoin worth approximately $438 million to crypto exchanges, following the seizure of these assets from the operators of the piracy website Movie2k.to.
This move comes after the Federal Criminal Police Office (BKA) seized nearly 50,000 BTC in mid-January. Meanwhile, Bitcoin has recently collapsed from the recent highs, with its current price now standing at $62,747.82, reflecting significant declines.