German Government Bitcoin Movement: Lawmakers Ask for a Halt as 3,000 BTC Hits Exchanges

Rameesha Sajwar
By Rameesha Sajwar Add a Comment
4 Min Read
German Government Bitcoin Movement

The latest actions by the German government have stirred significant discussions among Members of Parliament (MPs) who are concerned about the ongoing Bitcoin sell-off and its implications for the country’s financial stability.

German Government Bitcoin Movement

Since 11:11 am UTC, the German government has allegedly transferred over 3,000 Bitcoin (BTC), bringing the total BTC volume moved in the last 24 hours to a substantial five-figure amount. This move is part of a broader trend of Bitcoin sell-offs initiated by the German government since June 19.

Parliamentary Concerns

Despite these actions, some parliamentary members, like German lawmaker and BTC activist Joana Cotar, have voiced their opposition. Cotar has urged the government to “refrain” from continuing its “hasty disposal of state-owned Bitcoin.” She argues that instead of selling off the BTC, the government should consider adopting it as a “strategic reserve currency” to protect against the risks associated with the traditional financial system.

BTC Volume Movement

In the past 24 hours, the German government has seen a combined inflow and outflow of over 6,000 BTC, with more than half of this amount being transferred out of their wallet. According to the crypto update, the wallet, which currently holds 35,488 BTC—valued at over $2 billion—received 4,340 BTC during the day. Of this, over 3,000 BTC have been moved to exchanges or unknown addresses.

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German Government Bitcoin Movement
German Government Bitcoin Movement

Joana Cotar issued a statement to the German government on July 4, emphasizing that retaining BTC could help Germany diversify its treasury assets, foster innovation, and provide a hedge against inflation. She described the sell-off as “not only not sensible, but counterproductive.” Nevertheless, the government proceeded with selling an additional $172 million worth of BTC later that day. At that time, the wallet held over 42,200 BTC, valued at $2.4 billion. These values have since decreased to just over 35,400 BTC and $2 billion, respectively.

Mt. Gox Sell Pressure

The news sources have reported that the ongoing market sell pressure has been exacerbated by the recent announcement from the defunct crypto exchange Mt. Gox, which has begun repaying its BTC and Bitcoin Cash (BCH) debts. Nobuaki Kobayashi, the trustee of the Mt. Gox repayments process, stated in an official release that repayments would commence “in accordance with the Rehabilitation Plan.” According to a post by MtGoxBalanceBot on X, the known addresses of the Trustee held over 94,400 BTC, with more than 47,000 BTC already moved.

News sources suggest that the actions taken by the German government have significant implications for the broader crypto market, especially considering the substantial volume of BTC being moved. The decisions made by the government could influence market perceptions and investor confidence in both Bitcoin (BTC) and Ethereum (ETH).

Conclusion: German Government Bitcoin Movement Sparks Debate Over Holding Cryptocurrency

The German Government Bitcoin movement has sparked a considerable debate among MPs, reflecting a broader conflict between traditional financial stability and the potential benefits of holding and utilizing cryptocurrencies. The ongoing transactions and sell-offs highlight the complex dynamics at play within the crypto market, as well as the critical decisions facing governments in balancing innovation with economic security. Lawmakers have put their suggestions forward and the direction will be driven by the government’s next move. 

For more updates and detailed analysis on the German Government Bitcoin Movement and other significant developments in the crypto world, follow The BIT Journal

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