The German government has been transferring large amounts of Bitcoin to exchanges recently, with the obvious intention of selling and cashing out, causing investor panic to rise sharply. It also attracted the condemnation of German MP Joana Cotar and warned the government that rushing to sell Bitcoin will only be counterproductive. .

In January this year, German police seized nearly 50,000 Bitcoins (worth approximately US$2.7 billion) during an investigation into the pirated film and television paradise "movie2k.to". However, more than US$300 million in Bitcoins have been transferred out in the past two weeks, of which Nearly $200 million flowed into cryptocurrency exchanges such as Coinbase and Kraken.

As you can imagine, this move has made the market already panicked by the "Mt. Gox repayment" even worse. Critics believe that such a large-scale liquidation by the German government may have a long-term negative impact on the stability of the cryptocurrency market. .

In a series of posts, German MP Joana Cotar condemned the government’s move, emphasizing that this approach would be counterproductive, and suggested that the government should follow the U.S. business community in treating Bitcoin as a strategic reserve asset.

Joana Cotar revealed she had expressed her concerns to Saxony Chancellor Michael Kretschmer, Finance Minister Christian Lindner and German Chancellor Olaf Scholz, urging them to reconsider the strategy.

Instead of holding#Bitcoinas a strategic reserve currency, as is already being debated in the US, our government is selling on a large scale. I have informed @MPKretschmer, @c_lindner & @Bundeskanzler @OlafScholz why this not only doesn't make sense, but... pic.twitter.com/v9FpzmfLbp

— Joana Cotar (@JoanaCotar) July 4, 2024

In order to prevent the German government from smashing the market through the exchange, Tron founder Justin Sun also boldly proposed to purchase all the German government’s Bitcoins off-site to minimize the impact on the market.

〈We want the government to stop selling Bitcoin! German MPs condemned: Rushing to cash out will only be "counterproductive". This article was first published on "Blocker".