German MP Urges Government to Hold Bitcoin Amid Selling Spree

NAIROBI (CoinChapter.com)— Joana Cotar, an independent member of the Bundestag, has called on the German government to halt its ongoing Bitcoin sales. Cotar’s plea comes amid substantial BTC transfers from the government’s wallet, raising concerns about the impact on Bitcoin’s market performance.

Cotar addressed Michael Kretschmer, a deputy chair of the CDU, Christian Lindner, the Federal Minister of Finance, and Chancellor Olaf Scholz. She criticized the sales as “counterproductive” and invited them to a lecture by Bitcoin evangelist Samson Mow on Oct. 17.

In her letter, Cotar emphasized Bitcoin’s potential for asset diversification and its role as a hedge against inflation and currency devaluation. She highlighted the cryptocurrency’s scarcity and potential to promote innovation, economic sovereignty, and technical progress.

Recent Government Sales Impact Bitcoin Market

Last month, the German government sold millions of dollars worth of Bitcoin, contributing to a bearish market sentiment. The sale followed the government’s acquisition of Bitcoin from the ‘Movie2k.to‘ piracy website crackdown over a decade ago. The government’s holdings made it one of the largest Bitcoin holders.

PeckShieldAlert reported today that the German government transferred another 1,300 BTC to exchanges, amplifying the selling pressure. At the same time, the government transferred 1,700 BTC to a separate wallet address, later moving a total of 3,000 BTC.

Bitcoin Price Drops Below $57,000

BTC price recently fell close to $56,830, likely affected by these large transfers. The selling spree raises questions about the government’s strategy, especially considering Bitcoin’s potential as a strategic reserve currency.

Cotar’s plea to halt the sales comes amid debates in other countries about holding Bitcoin as a strategic asset.

Peter Chung, Head of Presto Research, noted the upcoming Mt. Gox repayment could also impact the market. The Mt. Gox Rehabilitation Trustee plans to distribute billions of dollars worth of BTC and BCH to creditors between July 1 and October 31. This distribution could add more selling pressure to the market.

Cotar’s appeal to halt the sales underscores the importance of the prime crypto as a strategic asset.

In 2023, Cotar spearheaded a legislative push to adopt Bitcoin as legal tender in Germany, inspired by El Salvador’s precedent.

The move, alongside the government’s substantial BTC reserves accrued from past crackdowns on digital piracy, places Germany in a pivotal position to leverage cryptocurrency for national economic strategies.

The post German MP Urges Government to Hold Bitcoin Amid Selling Spree appeared first on CoinChapter.