Arkham Intelligence: 'Germany owns 38,826 bitcoins worth over $2.2 billion'

Earlier this year, the BKA confiscated 49,857 BTC from the site's operators.

Against the background of the beginning of payments to investors of the bankrupt crypto exchange MtGox, the active state sale of bitcoins put additional downward pressure on the market rate of the first cryptocurrency. At the moment, the value of VTS sagged to $51,500.

According to Blockware Intelligence experts, Germany's bitcoin sell-off is a strategic mistake that deprives the country of additional leverage for financial maneuvering.

"The German government has foolishly transferred more than $390 million in BTC to exchanges over the past few weeks to sell for fiat currency. From a political perspective, selling bitcoin assets for fiat currency is a mistake given its ability to simply print money out of thin air," Blockware Intelligence said in a newsletter release.

The day before, Bundestag MP Joana Cotar criticized the government for selling off the state's holdings of the first cryptocurrency. The parliamentarian argues that this not only increases the volatility of the crypto market, but also reduces Germany's ability to diversify treasury assets and hedge against inflation.