Germany Sold $6.6B in Bitcoin for Just $3B — The Worst Crypto Mistake of the Decade

Key Insights

• Germany sold off thousands of Bitcoins earlier last year, before the big pump.
• This sale earned the German government a staggering $3.3 billion in profits, which was good enough at the time.
• The same amount of Bitcoin would now be worth more than $6 billion at the time of writing.
• This incident shows the importance of patience in the crypto space, when it comes to handling crypto.

In 2024, Germany made what many now call one of the worst financial mistakes of the decade.

The European country sold off its entire Bitcoin holdings just before the market boom, to the tune of 50,000 BTC.

At the time, this seemed like a major opportunity to cash out on $3.13 billion. However, fast forward one year, and those same assets would have been worth over $6.6 billion.

This is more than double the original amount.

The Backstory Behind The BTC

The 50,000 Bitcoins didn’t come from a state-backed investment strategy. Instead, the German government got them through a high-profile anti-piracy operation.

After confiscating the coins, German authorities opted to liquidate the assets in July 2024.

At the time, Bitcoin was trading at roughly $62,600, and Germany selling the entire reserve raked in around $3.13 billion.

Which is a tidy sum by most standards.

However, this decision was made just before the massive market upswing that we now see today.

At the time of writing, Bitcoin is now worth over $130,000. In essence, these same coins would now fetch over $6.64 billion.

Why the Sale Looks Like a Massive Mistake

The staggering price increase in Bitcoin over the past year makes Germany’s decision appear shortsighted.

This is especially considering its stance against crypto in the regulatory sense.

So far, Germany has been relatively progressive with crypto regulations and leads the European Union in issuing MiCA (Markets in Crypto-Assets) licenses.

However, despite this openness, it chose to offload its entire Bitcoin stash instead of holding it as a long-term asset.

What makes the move even more baffling is that other countries were heading in the opposite direction at the time.

For example, El Salvador and Bhutan, were actively accumulating Bitcoin during the same period.

Missed Timing and Irreversible Loss

The timing of Germany’s liquidation couldn't have been worse.

Even if the goal was to eventually sell, delaying the move could have doubled its relative returns.

Now, its once-valuable crypto wallet holds just 0.0069 BTC according to data from Arkham Intelligence.

These holdings are barely worth a few hundred dollars and are made up of trace donations from anonymous users.

This outcome shows a major truth across the crypto space, where timing can make all the difference in many scenarios.

Other Nations Took Different Paths

Germany wasn’t alone in selling Bitcoin. In 2024, the United States and Ukraine also liquidated portions or all of their holdings, which led to a 12% drop in globally held state-owned Bitcoin reserves.

However, soon after this, President Donald Trump proposed creating a national Bitcoin reserve.

Meanwhile, China and the UK kept their holdings untouched. Those untouched assets are now even more valuable than they ever were, because these governments HODLed.

Crypto Analysts and Public Reaction

The crypto community didn’t hold back with their comments. One analyst summed it up on social media: “Among all the bad decisions being made for the country at the moment, this turns out to be the worst.”

Critics questioned why Germany, a country seen as tech-forward and regulation-savvy, would act so hastily.

While it is common for governments to sell seized assets, many now argue that crypto should be treated differently..

Overall, the rest of the crypto market can pull out a few lessons from these incidents.

Firstly, don’t rush to sell, treat your crypto like a strategic reserve asset,understand the market cycle, consult with experts and always, always do your own research.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.