The Bitcoin (BTC) market witnessed a major shake-up a couple of months ago when the German government began selling its BTC stash. After it seized a significant amount of Bitcoin from criminal cases, the government was forced to liquidate its funds.
Approximately 44,200 BTC, or 88.4% of Germany’s initial holdings of 50,000 BTC, had been sold by mid-July. The country garnered immense backlash for this sale.
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Bitcoin’s Price During This Sale
Back in July, the price of the king coin witnessed increased volatility. The asset dipped below the $60,000 mark, causing chaos in the market. Bitcoin was trading at a low of $56,000 during that time. But now, the world’s largest cryptocurrency is inching closer to the $70,000 zone. At press time, BTC was trading at $66,265.48, following a drop of over 1% throughout the past 24 hours.
This further represents a 17% rise in BTC’s price since Germany sold its Bitcoin holdings. As a result, a $1,000 investment during the time could have brought in a dainty yield. According to calculations, $1,000 would turn into $1,184, at the asset’s current price.
Even though the profits aren’t very high, holding on to the king coin for a longer period of time will translate to a better yield. Several analysts and institutions believe that BTC will explode in the next year.
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Germany’s Cryptocurrency Initiatives
During a recent presentation in the German Bundestag, Samson Mow, the CEO of the Bitcoin technology company Jan3, adamantly argued that Germany should add Bitcoin to its national strategic reserves. Mow urged the nation to buy 281,267 Bitcoin in order to diversify its asset base and strengthen its financial stability.
Members of Parliament and proponents of Bitcoin have taken notice of this project, which has sparked conversations regarding Bitcoin’s potential contribution to Germany’s financial future. If the country purchases Bitcoin in the future, it could certainly boost the price of the king coin.
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