Bitcoin: El Salvador's Reserves Will Soon Exceed Those of Germany

In recent days, the crypto community’s attention has been particularly focused on the selling pressure exerted by the German government. This is indeed having a considerable impact on the price of BTC. According to data, El Salvador could soon surpass Germany in terms of Bitcoin reserves. With daily purchases, El Salvador already reaches 5,808 BTC, while Germany continues to sell its reserves. What does this dynamic mean for the cryptocurrency market?

TODAY: German Government selling up to 2700 BTC ($154.60M)

In the past hour, the German Government has sent 2700 BTC ($154.60M) to Kraken, Bitstamp, Coinbase, 139Po (likely institutional deposit/OTC service) and address bc1qu.

Since yesterday’s movements, the German Government… pic.twitter.com/XNyqgzPR7M

— Arkham (@ArkhamIntel) July 12, 2024

El Salvador accelerates its Bitcoin purchases

El Salvador’s interest in Bitcoin is no longer a secret. And even considering the current market volatility, the country seems to persist in its strategy.

For several months now, El Salvador has been buying 1 Bitcoin per day. At the time of writing this article, it has accumulated a reserve of 5,808 BTC (according to Glassnode). This daily purchasing strategy allows the country to gradually strengthen its cryptocurrency reserves.

President Nayib Bukele, a fervent advocate of Bitcoin, sees this strategy as a way to diversify the economy of the country.

Germany unloads its Bitcoin reserves

In contrast, Germany adopts a different approach by regularly selling its Bitcoin reserves. Recently, the German government sold 2,700 BTC, reducing its reserves to 6,894 BTC. This sale, valued at $154.60 million, shows a willingness to divest from digital assets. According to Arkham Intelligence, this strategy aims to redirect the funds toward other financial opportunities.

With Germany’s continuous Bitcoin sales, El Salvador is therefore poised to surpass Germany’s reserves. Currently, it would only take one more sale from Germany for El Salvador to take the lead in Bitcoin holdings.

El Salvador and Germany show two distinct strategies regarding Bitcoin. While one accumulates, the other sells. This dynamic could have significant repercussions on the crypto market. But not only that! It also influences the investors’ decisions.