The early sale of Bitcoin by the German government resulted in millions of dollars in losses.

Strategies for managing seized assets by governments in the cryptocurrency world are causing significant debates. The U.S. government has similarly converted a total of 195,091 Bitcoins into cash through 11 auctions, incurring an opportunity cost of $16.6 billion based on current prices.

GOVERNMENTS' BITCOIN SALE STRATEGIES HAVE COSTLY CONSEQUENCES

In July, the German government sold seized Bitcoins from the pirate movie site Movie2K at an average price of $57,600. In the following months, the price of Bitcoin reached its previous record level of $76,000, and after the U.S. elections, this record exceeded $89,000 in a single day.

After Donald Trump was elected president, Bitcoin recorded its largest daily increase in history on November 11. This development raised the potential value of the Bitcoins sold by the German government to $4.5 billion.

The Trump administration's decision not to sell seized Bitcoins and to create a strategic national Bitcoin reserve indicates the beginning of a new era in cryptocurrency markets.