The German government recently transferred more than $175 million worth of Bitcoin (BTC) to multiple cryptocurrency exchanges including Coinbase, Kraken and Bitstamp. National-level selling pressure is believed to be one of the reasons for the market’s continued decline. Germany Bundestag member Joana Cotar strongly criticized the decision, believing it would have a long-term negative impact on the stability of the cryptocurrency market.
German MP: The strategic significance of BTC should be considered
In a series of tweets, German Bundestag member Joana Cotar strongly condemned the government’s recent decision to sell Bitcoin on a large scale. She believes the move is counterproductive and contrasts it with the U.S.’s strategic perspective on Bitcoin.
Joana Cotar pointed out that in the United States, Bitcoin is regarded as a strategic reserve currency, while the German government’s sales actions appear short-sighted. She expressed her concerns to Saxony's ministers, President Michael Kretschmer, Finance Minister Christian Lindner and Finance Minister Olaf Scholz, and urged them to reconsider the strategy.
It is understood that the Bitcoin sale in Germany stemmed from an investigation into the illegal movie streaming website Movie2k.to, during which approximately 50,000 Bitcoins were seized, which are currently worth more than $3 billion.
According to blockchain intelligence company Arkham Information, the German government has transferred 1,300 BTC (approximately US$76 million) to exchanges such as Kraken, Bitstamp and Coinbase in the past two days. They also transferred 1,700 BTC (approximately $99 million) to address 139Po. These funds may be transferred to institutional services or OTC deposits, and the German government currently still holds 40,359 BTC in on-chain tagged addresses, with a total value of approximately $2.3 billion.
Brother Sun is proud: I will accept all the BTC from Germany
As the price of Bitcoin fell and the German government transferred millions of dollars worth of Bitcoins, Tron founder Justin Sun Justin Sun announced on Over-the-counter (OTC) purchases all Bitcoin held by the German government to minimize the impact of these Bitcoins flowing into the market on prices.
