Coinspeaker German Government Still Holds Over $2B in BTC despite Selloff, Crypto Analyst Criticizes Strategy
The German government has been selling off its Bitcoin holdings over the past few weeks, which has contributed to the selling pressure on the coin and a downturn in the crypto market. However, according to Arkham Intelligence, the government still holds 38.826 BTC, over $2 billion.
The current BTC holdings of the German government constitute a large part of the Bitcoin daily trading volume, accounting for almost 9%. Thus, if they are sold, it could put a lot of selling pressure on the market and ultimately lead to another dip in Bitcoin’s price.
The German Federal Police Agency (BKA) took control of 49,857 BTC from the people behind Movie2k.to, a website known for having pirated content that was active until 2013. After taking over the digital assets, the German government has been selling them off. They have sold 10,000 BTC since the middle of June this year. It is yet to be revealed what the German authorities will be doing with the remaining holdings.
Experts Criticize Germany’s Approach to Bitcoin Asset Management
The continuous offloading has led crypto experts to criticize the German government, citing its impact on the general crypto market. Justin Sun, Tron’s founder, stated on his X page that he is willing to negotiate with the German government to buy all its BTC so as to reduce the effect on the crypto market.
Similarly, the German Member of Parliament Joana Cotar has openly criticized the government’s decision to sell off the digital asset in its possession. Cotar, in her post on X, revealed that while other countries are holding their crypto asset, Germany, on the other hand, is offloading theirs on a large scale basis, terming it as not sensible and counterproductive. She stated:
“Instead of holding Bitcoin as a strategic reserve currency, as is already being debated in the USA, our government is selling on a large scale.”
Under the X post that Cotar made, she added copies of a letter she sent to Prime Minister Kretschmer dated July 4, in which she requested the German government stop the quick selling of the country’s BTC. She further stressed that BTC gives the country an avenue to diversify its assets, thereby mitigating the risk associated with traditional investment.
Also, in a published post by Blockware Intelligence, the German decision to sell its BTC holdings was tagged as a strategic blunder. They stated that it is an error for a country to decide to offload its BTC holdings for fiat currency. They maintained that Bitcoin is much more difficult to acquire than fiat currency, which can be printed at will, and that countries should seek to hold BTC as a strategic asset.
While Germany is yet to decide on what to do with its remaining Bitcoin holding, what is most certain is that if the country decides to dump more, it could result in more selling pressure, potentially affecting the price of BTC.
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German Government Still Holds Over $2B in BTC despite Selloff, Crypto Analyst Criticizes Strategy