Amid an apparent selloff that rapidly accelerated over the last two days, the German government has reduced its Bitcoin holdings to less than $1 billion as of Wednesday.

Germany has moved substantial amounts of Bitcoin from its wallets to various crypto exchanges and market markets in recent days, following slower movements in previous weeks. This selloff comes just a month after the government held approximately $3.46 billion in BTC as of June 10.

According to data from Arkham Intelligence, the German government currently holds 13,733 BTC, valued at $792 million—compared to 49,860 BTC  just a month ago. 

This sharp reduction in Bitcoin holdings is a part of the German government’s strategy to liquidate a significant portion of its digital assets. The government has transferred some $2 billion worth to exchanges and market makers within the last week alone.

While that does not necessarily mean that the transferred assets have already been liquidated, it does suggest that the German government is looking to part with the cryptocurrency.

Amid Germany’s selloff, analysts at investment firm Bernstein on Wednesday reaffirmed their bullish stance on Bitcoin, which currently sits at a price of about $57,700—down over 4% from one week ago.

In a note shared with Decrypt, Bernstein maintained a highly optimistic view on Bitcoin's future, projecting a price target of $200,000 by 2025, $500,000 by 2029, and exceeding $1 million by 2033.

"We remain Bitcoin bulls,” the analysts wrote. They attributed this bullish outlook to Bitcoin's unique demand and supply dynamics, particularly the four-year halving cycle. Bitcoin’s price typically starts to rise months after the quadrennial halving, due to less new BTC entering the market alongside growing sell pressure for miners.

The success of spot Bitcoin ETFs in the United States further bolstered Bernstein's conviction. 

"Currently, we understand that ~80% of the ETF flows are still coming from self-directed retail investors via broker platforms," the report states, indicating significant potential for institutional adoption.

Edited by Andrew Hayward