Can you please stop selling bitcoin?, German government is asked as price falls
“Instead of holding Bitcoin as a strategic reserve currency, as is already being discussed in the US, our government is selling it on a massive scale,” writes MP Joana Cotar in X, referring to the cryptocurrency sales being carried out by the German government.
Given this situation, and given the pressure that sales are exerting on the market, Cotar sent a letter Chancellor Olaf Scholz, Finance Minister Christian Lindner and Michael Kretschmer, one of the deputy chairmen of the Christian Democratic Union of Germany (CDU).
In her letter, the MP calls on these German political figures: “Can you please stop selling bitcoin?” she asks them, while explaining to them: Why selling cryptocurrencies is counterproductive.
He points out the effects that this action has on the market and explains the advantages of keeping the currency due to its long-term revaluation.
Cotar – already known among German politicians as a staunch Bitcoiner – highlights Bitcoin’s potential as a safe haven and insists on pointing to the digital currency as an important tool for government performance. She advises rulers to acquire more BTC and add it to their reserves, inviting them to the talks she gives as part of her crusade to educate politicians about Bitcoin.
The parliamentarian argues that the cryptocurrency pioneer offers States “a unique opportunity” for asset diversification, as it is capable of mitigate the risks associated with excessive exposure to traditional assets.
As CriptoNoticias reported, in the last two weeks both Germany and the United States have sent more than 12,000 bitcoins to different cryptocurrency exchanges. The German government alone has so far mobilized more than 3,000 BTC.
Of that amount Around 2,000 bitcoins have been transferred in the last 24 hoursAccording to Arkham, the German government’s most recent transaction transferred 547.44 BTC to market maker Flow Traders.
According to the Federal Criminal Police Office (BKA), these sales by the German government will not stop. It is therefore highly likely that the authorities will continue to place the remaining holdings on the marketwhich exceeds 41,000 BTC (about USD 2.27 billion at the current exchange rate).
A spokesman for the German BKA explained that Authorities cannot retain digital assets and sell them when a related case is concluded. “Only cryptoassets seized or confiscated during investigations are kept for the prosecutor’s offices,” Kristina Sawazki, another member of the police team, told the media, adding that the Office is not in charge of selling bitcoins.
Such action is generating a negative impact on the price of bitcoinwhich since July 4 lost the support of USD 60,000 that it had maintained in recent weeks, reaching a price below USD 55,000The decline is not only related to sales by the German and US governments, but also because the payment to Mt. Gox creditors put more than 47,000 BTC on the market.
This is one of the reasons why the Germans’ wallet is also is in the crosshairs of bitcoin traders in the last days.
Given this scenario, TRON founder and owner of the HTX exchange, Justin Sun, offered to buy the more than USD 2.2 billion in BTC that the German government still holds, so that it does not continue to affect the marketMeanwhile, others question the reasons why governments – now turned into bitcoin whales – They do not use auctions to make these settlements without causing such an impact on the market.
It is worth remembering that the German government became one of the largest bitcoin whales last January, after the seizure of 50,000 BTC from Movie2k.to, a popular pirated movie website that had gained popularity in German-speaking countries.
