In a move now widely criticized by crypto analysts, the German government has sold off its entire stash of 50,000 Bitcoin—seized from the defunct piracy website Movie2k—for $2.89 billion, according to blockchain intelligence firm Arkham.

The movement was tracked from a cryptocurrency wallet labelled “German Government (BKA)", which experts believe it belongs to the German government.

In a mere two months, the German government sold off all of its Bitcoin for a averaged price of $57,900 per BTC.

With Bitcoin now trading above $104,700, that same haul would be worth a staggering $5.24 billion—meaning Berlin may have left $2.35 billion on the table.

Arkham wrote in a post on X, highlighting the government's costly miscalculation.

“If they had held it, their BTC would now be worth $5.24B.”

Poor Strategy, Harsh Criticism

The fire-sale approach began in June 2024, when German authorities quietly offloaded 6,500 BTC—then valued at around $425 million—causing ripples of uncertainty across the crypto market.

Rather than optimizing for market timing or leveraging OTC desks to avoid slippage, the government chose to distribute the sales across at least five centralized exchanges, according to on-chain data.

Analysts have pointed out that this approach prioritized speed and liquidity over profitability and market stability.

Ripple Effects on the Market

Critics argue that this liquidation strategy not only resulted in significant missed gains, but also contributed to short-term bearish pressure on Bitcoin during a sensitive phase in the market.

The rushed decision raises broader concerns about how governments manage seized digital assets, especially when those decisions can directly impact billions in value and influence broader market sentiment.