As an analyst with a background in economics and experience in cryptocurrency markets, I strongly believe that Joana Cotar’s call for the German government to halt its bitcoin selling is well-founded. The continued offloading of bitcoin by the German authorities has undoubtedly had a negative impact on the asset’s price, as evidenced by the significant drop in value during June and July 2021.
Joana Cotar, a German member of parliament and Bitcoin activist, urged the government to stop offloading its bitcoin stash. Its continued selling has affected the asset’s price, causing it to slowly lose value in June and record a massive single-day drop to below $54,000 on July 5. Bitcoin’s price was above $60,000 two days prior. The German-related wallet labeled “German Government (BKA)” moved $172 million worth of bitcoin on July 4.
As a financial analyst, I acknowledge that while the German government’s asset sale played a role in Bitcoin’s price drop, it wasn’t the sole cause. Another significant factor came into play when Mt. Gox initiated its creditor repayment process on July 4.
I strongly advocated for the government to hold onto its Bitcoin reserves instead of selling them off, despite the potential price decline. By doing so, we would be diversifying our national reserve, providing a shield against inflation and currency devaluation, and most importantly, legitimizing cryptocurrencies in our country. This action would foster innovation within our borders and place us at the forefront of the digital currency revolution.
In a post on the X platform, she urged three fellow legislators to join her at the “Bitcoin Strategies for Nation States” seminar in October 2024, highlighting the significance of Bitcoin as the foremost cryptocurrency.
Our government is actively selling off its #Bitcoin holdings rather than considering it as a reserve currency, as some in the US are proposing. I have briefed @MPKretschmer, @c_lindner, and @OlafScholz on why this move is not only unwise but also detrimental. We will be discussing these very points during our lecture event with Samson Mow titled “Bitcoin Strategies for Nation-States” at the Paul-Löbe-Haus on October 17.
As an analyst, I’ve observed that Germany has so far transferred less than 20% of the confiscated bitcoin it holds, which amounts to approximately 50,000 units. This Bitcoin was reportedly obtained from Movie2K, a piracy website that the German authorities seized. However, it remains uncertain whether or not the government intends to sell its entire stash. Recently, Tron’s CEO, Justin Sun, expressed his interest in purchasing Germany’s bitcoin hoard off-market in order to prevent any potential negative impact on Bitcoin’s value.
Image by Walter Knerr from Pixabay
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2024-07-09 13:50