The recent selling spree by the German government has seen its Bitcoin holdings fall below 5,000 BTC, which means it now holds less Bitcoin than El Salvador.
Data from Arkham Intelligence shows that the German government wallet address now holds 4,925 BTC worth around $282 million. The German government has sold more than 90% of its Bitcoin stash.
The current stash is a significant drop from the nearly 50,000 Bitcoin the German government held last month before it started selling.
The government has sold coins on exchanges like Coinbase, Kraken, and Bitstamp. Some coins were also sent to over-the-counter (OTC) platforms.
The Bitcoin that the German government is selling was seized from the Movie2k.to movie piracy website. This website was taken down in 2013.
El Salvador’s BTC Holdings Surpass 5,000
The BTC holdings of El Salvador continue to increase even as other government wallet addresses continue to sell.
A cold wallet belonging to the Salvadoran government has been buying 1 BTC daily, with its total holdings now standing at 5,808 coins, worth $331 million at the current price of Bitcoin.
The Salvadoran government accepted BTC as legal tender in 2021, and ever since it has made several initiatives to make its Bitcoin plan a success. Besides buying BTC, the government has also participated in other activities, such as mining.
The commitment of El Salvador to support Bitcoin activities has also led the government to take Bitcoin education to schools.
It has introduced the Bitcoin Node Nation program in schools to teach areas such as coding, configuration, and managing liquidity.
The efforts of the Salvadoran government to support Bitcoin activities have also attracted the participation of others.
The City of Santa Monica in the US has opened an official Bitcoin office to follow the model used by El Salvador.
Government Bitcoin Holdings
The German government and El Salvador are not the only governments holding Bitcoin. Governments worldwide are among the largest Bitcoin holders, also known as whales.
The US government holds around 1% of the total Bitcoin supply. The government is believed to hold $12 billion worth of coins, which contributed to the selling pressure this year.
In April, the US government sent 2,000 BTC to the Coinbase exchange. These coins were worth $131 million at the time, making it one of the most active sellers this year.
The UK government currently holds $3.3 billion worth of Bitcoin. These coins were seized in 2021. However, unlike the German government, the UK is not an active seller and still holds a majority of coins.
Bitcoin investors have now been watching these government wallets following the recent drop in BTC prices below $55,000 after the German government started disposing of coins.
