Bitcoin braces for seismic aftershocks as the German government has begun offloading its vast BTC holdings. In the past two days, authorities have deposited a whopping 1,700 BTC, worth over $100 million, to leading cryptocurrency exchanges Coinbase, Kraken, and Bitstamp. This abrupt outpouring of BTC into the market is closely monitored by traders and investors, anticipating potential market turbulence.
The massive stash was originally confiscated from illicit activities and accumulated over several years. As per Lookonchain data, the German government currently has a total of 47,179 BTC and is worth a staggering $3.06 billion. Market analysts warn of increased volatility in Bitcoin prices following the German government’s decision to liquidate these assets.
Beware of the 47,179 $BTC ($3.06B) dump from the German Government! In the past 2 days, the German Government has deposited 1,700 $BTC($110.88M) to Coinbase, Kraken, and Bitstamp. German Government currently has 47,179 $BTC($3.06B) left.
If history is any indicator, large dumps of cryptocurrency on public exchanges have triggered sharp price declines, as supply overwhelms demand. The crypto market, known for its sensitivity to sudden price swings, is now bracing for potential aftershocks.
As crypto observers contemplate the next move, a few experts have questioned the timing of the German government’s decision. Some believe that by selling Bitcoin, Germany might be aligning itself with countries that support crypto, potentially influencing future regulations and market trends.
Bitcoin Business Boom: Zero Capital Gains Tax In Germany
Nevertheless, investors and traders are urged to closely monitor the situation. For those with a long-term outlook, temporary price drops may provide a chance to buy Bitcoin at a lower cost. However, short-term traders should exercise caution, as rapid price fluctuations could lead to substantial losses.
That being said, a segment of proponents have praised the regulatory and tax structure for businesses operating in the cryptocurrency domain. Some of these are even considering launching a Bitcoin medium of exchange (MoE) business in markets such as Germany, Switzerland, or Portugal. These “beachhead” markets, as per them, offer either zero capital gains tax or zero after one year, which translates to significantly reduced friction and tax-related anxiety.