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German MP Urges Government to Stop Selling Bitcoin, Pushes For it to Serve as Reserve

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A German MP, Joana Cotar, criticized the German government’s recent decision to sell a significant portion of its Bitcoin holdings.

The government moved over $195 million worth of Bitcoin to various crypto exchanges, including Coinbase, Kraken, and Bitstamp, causing increased market volatility and significant fluctuations in Bitcoin prices.

Notably, critics argue that such large-scale government liquidations could have long-term negative impacts on the stability of the crypto market.

However, the sales stem from assets seized during a high-profile investigation into the illegal movie streaming site Movie2k.to, which led to confiscating about 50,000 BTC, now valued at over $3 billion. The sales have sparked controversy and debate within Germany and beyond as the government continues liquidating assets seized in the high-profile case.

Critics argue that the government’s large-scale liquidations could negatively impact Bitcoin’s value and stability long-term.

German MP Pushes to Educate Govt

In a series of tweets, the german mp condemned the government’s move and contrasted it with discussions in the US, where Bitcoin is considered a strategic reserve currency. Furthermore, she addressed her concerns to Saxony’s Minister, President Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz, urging them to rethink the strategy.

She emphasized the counterproductive nature of this approach and invited the officials to attend an upcoming lecture event titled “Bitcoin Strategies for Nation States” on October 17. The event will feature Samson Mow, CEO of JAN3 and a prominent Bitcoin strategist.

Justin Sun Offers to Buy Germany’s Bitcoin

The cryptocurrency market is experiencing a significant decline, with Bitcoin’s price continuing to fall. This downward trend is partly due to the German government’s ongoing sale of its substantial Bitcoin holdings.

Reports indicate that Germany has been transferring its Bitcoin assets to cryptocurrency exchanges and selling them, contributing to the recent drop in Bitcoin’s value. However, an additional $175 million worth of Bitcoin followed a recent transaction involving 750 of the asset.

In response to this situation, Justin Sun, the founder of TRON, has proposed a solution to mitigate the further decline of Bitcoin’s price.

Notably, Sun has publicly stated his willingness to negotiate with the German government to purchase their entire Bitcoin holdings off-market, thereby reducing the impact of their sales on the cryptocurrency market.

Nonetheless, this proposal has garnered significant attention within the cryptocurrency community, raising hopes for a potential reversal of the downward trend.