- Germany lost $3.1B by selling Bitcoin early while prices surged, highlighting poor execution and timing in state crypto strategy.
- Bitcoin hit $118K after Trump’s support and ETF approvals, drawing massive institutional interest and pushing global adoption forward.
- Despite selling Bitcoin too soon, Germany embraced blockchain by issuing a $116M public bond on Polygon, showing real innovation.
Bitcoin has soared to a new all-time high of $118,000, shaking global markets and spotlighting recent moves by major players. Germany’s government sold 50,000 BTC at around $54,000 per coin. This decision cost them roughly $3.1 billion in unrealized profits as per Warcher Guru. The sale caused a brief dip in prices, triggering concerns about execution flaws and the impact of government-led crypto liquidations.
Analysts criticized the strategy, noting slippage due to poor trade execution. Consequently, this large-scale liquidation showed how government sell-offs can ripple through the crypto market. Besides the missed profits, the move also revealed inefficiencies in handling digital assets at a national level.
Trump and ETFs Fuel Bitcoin’s Bull Run
Bitcoin’s rally didn’t happen overnight. The real momentum began after Donald Trump publicly embraced Bitcoin on his campaign trail. His support helped drive Bitcoin past $100,000 shortly after his election victory. Additionally, growing institutional interest played a key role.
The U.S. Securities and Exchange Commission approved spot Bitcoin ETFs in early 2024. This move allowed investors to gain exposure to Bitcoin without owning it directly. As a result, more retail and institutional money entered the market. Moreover, companies began holding Bitcoin in their corporate treasuries, echoing strategies made popular by Michael Saylor’s firm, MicroStrategy.
Bitcoin now commands a market cap of $2.25 trillion, dwarfing Ethereum’s $340 billion. For an asset once considered niche, Bitcoin is now in the hands of major corporations and funds. If Satoshi Nakamoto, Bitcoin’s anonymous creator, ever reappeared, his holdings would be worth over $100 billion.
Germany Embraces Blockchain for Public Bonds
While Germany’s Bitcoin sale drew criticism, it also made strides in blockchain innovation. NRW.BANK, a state-owned development bank, issued a €100 million bond on the Polygon network. This two-year bond falls under Germany’s Electronic Securities Act, allowing digital issuance and registration.
The bank used Cashlink Technologies and Polygon to complete the bond sale. This move marks a major public-sector shift toward blockchain adoption in Europe. Hence, despite past missteps, Germany is still advancing digital finance through bold innovation.