The German government’s sale of 50,000 Bitcoin (BTC) during the summer caused a considerable dip in crypto prices. With Bitcoin falling below $54,000, the government earned around $2.88 billion from the sale. However, market analysts believe Germany missed a more significant profit by selling too soon, with estimates suggesting $1.7 billion in unrealized gains as Bitcoin’s price surges.
WatcherGuru, a crypto market observer, recently highlighted that Germany’s selloff coincided with Bitcoin’s recent rally, driven by significant events, including Donald Trump’s recent presidential election victory in the United States. Bitcoin, which initially fell below $50,000 following the sales, saw a substantial recovery. Over the past three months, its price has indicated increased volatility, culminating in a new all-time high of $89,643, according to TradingView data.
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Germany’s Selloff Puts Pressure on the Market, Yet Bitcoin Gains Momentum
The selloff by the German government, which lasted several weeks, was due to assets seized by law enforcement in Saxony earlier in the year. This sustained selling activity created considerable pressure on the crypto market, with Germany retaining roughly 32,500 BTC after the sale. Despite the short-term impact on Bitcoin’s price, the crypto asset rebounded strongly, reflecting a robust recovery trend associated with the four-year cycle following a Bitcoin halving.
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As 2024 ends, market experts see this as a significant period for Bitcoin. Halving years bring bullish runs due to scarcity occasioned by Bitcoin’s limited production capacity. Analysts expect this trend to continue, bolstered by recent favorable sentiment in the crypto sector, particularly from Trump’s vocal support of digital currencies.
The combination of historical cycles and renewed investor optimism suggests that Bitcoin may experience further gains in the coming months. Both retail and institutional investors appear increasingly confident in Bitcoin’s potential for growth, seeing it as a high-value asset as favorable conditions align for another major uptrend.
Bitcoin’s ongoing price momentum, supported by cyclical trends and a positive market outlook, signals that the coming months could bring more record highs for the digital asset.
Also Read: Binance Withdraws its License Application in Germany
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.