- The German government bought back 1,915 BTC for ~$111M
- Kraken, Coinbase, and Bitstamp participated in the transaction
- This morning, 1,047.4 BTC was withdrawn from that amount
- 1047.4 BTC was redistributed 547.4 BTC to Flow Traders and 500 BTC to 139Po
Just recently, we looked at Joana Cotar’s criticism of the German government’s bitcoin strategy.
In her opinion, the massive outflow of Bitcoin should be stopped, and it is necessary to keep Bitcoin in the state treasury, issue Bitcoin bonds, and create a conducive regulatory environment.
And suddenly yesterday the German government bought back 1,915 BTC.
Let’s Get to The Numbers
Last night, 1,915 BTC worth ~$111M entered the Germania wallet from Kraken and Coinbase. And already this morning 1,047.4 BTC was withdrawn and redirected, namely 547.4 BTC worth ~$30.1M to Flow Traders and 500 BTC worth ~$27.1M to 139Po (probably a deposit for institutional/OTC service according to Arkham Intelligence).
What Does This Mean?
Does Joana Cotar’s statement mean that the German government drastically changed its strategy? This is not a fact, but it is possible that other decision-makers share this view and that it was reinforced recently in the context of the US elections. Then, such an explicit statement from Joana Cotar could have created the critical mass needed to make such a decision.
However, there also remains a scenario where Germany does not see the potential in Bitcoin that Donald Trump and Joana Cotar point out, and instead sees excellent market potential. Trading Bitcoin wisely, especially on this scale, can be a great way to increase government budgets without printing euros and creating inflation in its currency. And while some have previously criticized Germany for even implementing such a strategy, pointing out that Bitcoin now needs to be purchased – their trading style seems more sensible and profitable than before.
Conclusion
Speaking in general, we need to look at its future actions. We can already assume that Germany is not looking to sell Bitcoin while it is worth something, otherwise, a price drop would scare them a lot and we would most likely see even more outflows.
Instead, we see good purchases at a good price. And we can assume two further scenarios.
Either Germany will start buying Bitcoin more and more, especially now, but will sell it when the price rises.
Germany will start to keep the bulk of what they bought even after the Bitcoin price rises, showing the strategy Joana Cotar pointed out.
