As an experienced financial analyst, I strongly believe that Joana Cotar’s concerns about the German government’s Bitcoin sell-offs are valid and warranted. The rapid selling off of Bitcoin by the German government is neither sensible nor productive in my opinion. Instead, they should consider holding Bitcoin as a strategic reserve currency to safeguard against economic instability, as is already being debated in other countries.


Joana Cotar, a German Member of Parliament and Bitcoin advocate, has urged the government to reconsider its hasty Bitcoin sales.

As an analyst, I would rephrase Cotar’s argument as follows: In my view, the notion of regarding Bitcoin as anything other than a sensible or productive asset is questionable. Instead, I advocate for considering it as a strategic reserve currency to ensure financial security amidst economic volatility.

Joana Cotar Criticizes German Bitcoin Sell-Offs

In a July 4th entry on X, Cotar voiced her apprehensions regarding the government’s approach, remarking, “Rather than considering Bitcoin as a potential strategic reserve currency, a topic under consideration in the U.S., our administration is actively unloading it in large quantities.”

Instead of holding Bitcoin as a strategic reserve currency, as is being debated in the USA, our government is selling it off in large quantities. I have informed @MPKretschmer, @c_lindner, and @Bundeskanzler @OlafScholz about why this is not only unnecessary but also…

— Joana Cotar (@JoanaCotar) July 4, 2024

Cotar stressed that selling more Bitcoins at this time is neither logical nor beneficial for the country’s economy. She underlined the potential value of Bitcoin in expanding the diversity of the national treasury. Moreover, she mentioned that possessing Bitcoin could act as a safeguard against inflation and potential currency depreciation.

According to the cryptocurrency analysis firm Arkham, the German government disposed of 8,611 Bitcoin units within the past month, translating to a negative portfolio adjustment worth around $820 million based on current market prices. Consequently, Germany’s Bitcoin stash now amounts to approximately 41,226 coins, with an estimated value of roughly $2.28 billion.

German Government’s Bitcoin Sales and Mt. Gox Payout

As a researcher studying cryptocurrency news, I’ve come across an intriguing development reported by CryptoPotato. According to their findings, the German government allegedly moved around 1,300 coins, which translates to approximately $75 million at current market rates, towards centralized exchanges such as Coinbase, Kraken, and Bitstamp.

As a researcher, I came across some intriguing information regarding Bitcoin transactions. Specifically, on June 19, a wallet belonging to the German Federal Criminal Police Office (BKA) made a transaction that raised my suspicions. In this transaction, they transferred 6,500 coins, which were worth over $425 million at the time.

As a crypto investor looking back at history, I’d put it this way: In 2013, around 50,000 Bitcoins that were in my possession, or rather, those of the operators of Movie2k.to – a notorious film piracy website, were taken away from me by the German Federal Criminal Police Office (BKA).

Currently, Justin Sun, the founder of TRON blockchain, has expressed his willingness to enter into talks with the German government for purchasing all of their Bitcoins off the market. He made this announcement publicly by stating, “I am open to negotiating a deal with the German government to acquire their entire Bitcoin holdings off-market.”

The ongoing selling of Bitcoin by the German government is not the sole reason for the fluctuations in the crypto market. The impending $9 billion settlement to the bankruptcy estate of Mt. Gox, which involved a major cryptocurrency exchange, may also be contributing to the recent drop in Bitcoin prices.

As a researcher studying the cryptocurrency market, I’ve noticed that Bitcoin’s value has dipped below the $55,000 mark – a level last seen back in February. This development comes on the heels of reports indicating that Mt. Gox transferred around 47,000 Bitcoins, equivalent to roughly $2.7 billion, to a newly created digital wallet prior to the planned payout.

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2024-07-05 19:27