In what is being called one of the more glaring timing errors in crypto history, the German government reportedly liquidated nearly 50,000 Bitcoin in mid‑2024 at prices averaging around $54,000–$58,000 each. Analysts now estimate the decision has cost Germany $2.3 to $3.6 billion in unrealized gains, as Bitcoin’s value has since more than doubled.
Background: The Sale and Its Fallout
The coins sold were understood to be seized assets—primarily tied to the defunct piracy network Movie2K. Over the course of multiple trades, the exit averaged between $57,900 and $54,000, generating revenue in the ballpark of $2.9 billion.
However, with Bitcoin now trading north of $120,000, those same holdings would be valued near $6 billion, implying a missed profit opportunity between $3 billion and $3.6 billion.
Reactions and Ramifications
Crypto analysts have dubbed the move a cautionary tale. The timing of the sale—amid rising demand and speculative fervor—underscores the risks governments face when converting volatile crypto assets into fiat prematurely. Some observers argue that better pacing or alternative strategies (e.g. staggered sales) might have preserved much of the upside.
Furthermore, the German government’s internal handling is now under scrutiny, with critics pressing for greater transparency about the rationale, oversight, and decision timeline.
As governments and institutions continue to cross paths with crypto markets, Germany’s experience becomes a stark example: even massive holdings can turn into monumental regrets with a few missed blocks on the timing slider.