German Government Continues Bitcoin Sell-Off, Transfers Another 1,000 Bitcoins

The German government continues its efforts to liquidate cryptocurrency assets by transferring 1,000 bitcoins to multiple exchanges. This action is a segment of a larger sell-off initiative, which certain government officials have criticized.

The German government has recently transferred 250 bitcoins to Bitstamp and another 250 bitcoins to Coinbase. The combined value of these transactions is close to $28 million, according to the current market rates. Furthermore, 500 bitcoins were moved to an unidentified address, which could be associated with a centralized cryptocurrency exchange or an over-the-counter (OTC) trading service.

The German government possesses roughly 38,826 bitcoins in identifiable addresses, with an estimated value of about $2.17 billion. These recent transactions are part of a sequence of sales conducted in the last few weeks to diminish the government's cryptocurrency assets.

Not everyone has welcomed the decision to liquidate the government's bitcoin reserves. Joana Cotar, a Bundestag member and recognized Bitcoin proponent, has voiced criticism of the strategy. She contends that the government should contemplate retaining bitcoins as a strategic reserve currency rather than rapidly selling them off.

"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," Cotar stated last Thursday. She labeled the decision as "not sensible" and "counterproductive" to the country's long-term financial strategy.

The ongoing liquidation of Bitcoin holdings by the German government is sparking debate within the nation. Some view this as a practical step to capitalize on the cryptocurrency's value, while others advocate for a strategic method, suggesting Bitcoin be held as a reserve asset. The effects of the government's sell-off on market prices and the internal political landscape are yet to be determined.