The German government has taken control of 50,000 Bitcoin and has recently sold 3,000 BTC, resulting in over $3 billion in BTC holdings. This has led to an unrealized profit of $1.1 billion due to the surge in Bitcoin prices, according to Ki Young Ju, Founder & CEO of CryptoQuant.
The chart created by Ki Young Ju, titled “BTC Unrealized Profit: German Government (BKA),” illustrates the correlation between Bitcoin’s price and the unrealized profit of the German government’s holdings. As the price of Bitcoin rises, so does the unrealized profit, especially noticeable from January 2024 onwards.
Germany’s Bitcoin holdings now rank as the fourth-largest among government entities, with 50,000 BTC in its possession. This places Germany behind the United States, China, and the United Kingdom in terms of total Bitcoin holdings. The United States leads with 213,246 BTC valued at $13.7 billion, followed by China with 190,000 BTC at $12.2 billion, and the United Kingdom with 61,000 BTC valued at $3.9 billion. Despite being smaller than the top holders, Germany’s supply ratio of 0.253% shows its impact in the Bitcoin market.
Ki Young Ju’s analysis suggests that China may have sold a significant portion of the seized Bitcoins in 2019, as PlusToken holdings were moved to Chinese exchanges. However, the Chinese government has not officially confirmed these transactions.
Following the seizure of assets from the operators of the piracy website Movie2k.to, the German government transferred 6,500 Bitcoin worth around $438 million to crypto exchanges. This move comes after the Federal Criminal Police Office (BKA) confiscated nearly 50,000 BTC in mid-January. Despite recent price declines, with Bitcoin now at $62,747.82, concerns about a selloff have been raised.
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