The German government has ignited controversy in the cryptocurrency world by transferring over 3,000 Bitcoin in just one hour. This move is part of an ongoing sell-off trend that has seen the government shift a five-figure volume of BTC since June 19, despite opposition from certain lawmakers.
In the last 24 hours, the government has moved over 6,000 BTC, with more than half of that amount leaving its wallet. The primary address, currently holding over $2 billion in Bitcoin, received 4,340 BTC today and subsequently moved over 3,000 BTC to exchanges or unknown addresses. This aggressive selling has faced criticism from political figures.
German lawmaker and Bitcoin advocate Joana Cotar has called on the government to cease the “hasty disposal” of state-owned Bitcoin. Cotar argues that Bitcoin should be retained as a strategic reserve currency to protect against the risks of the traditional financial system. She described the government’s decision to sell its BTC holdings as “counterproductive” and a missed opportunity to diversify the country’s treasury assets.
The controversy is further intensified by the recent announcement from the defunct crypto exchange Mt. Gox, which plans to begin repaying its Bitcoin and Bitcoin Cash debts. Trustee Nobuaki Kobayashi confirmed that repayments would start in line with the Rehabilitation Plan. Known addresses of the Mt. Gox trustee currently hold over 94,400 BTC, with more than 47,000 BTC already moved, adding to the market pressure.
The German government’s ongoing Bitcoin sell-off, combined with the impending Mt. Gox repayments, is causing significant market turbulence. As political figures like Cotar push for a reassessment of these actions, the cryptocurrency community is closely monitoring the situation to gauge its impact on the market.
Get exclusive insider access to daily market intel reports across web3 –lifetime NFT access.