Recently, the German government transferred over $175 million worth of Bitcoin (BTC) to various cryptocurrency exchanges, including Coinbase, Kraken, and Bitstamp. Currently, they still hold 40,359 BTC in marked addresses, with a total value of around $2.3 billion.
The national-level sell-off is believed to be one of the reasons for the continuous market decline. German Federal Parliament member Joana Cotar strongly criticized this decision, stating that it will have a long-term negative impact on the stability of the cryptocurrency market.
Joana Cotar emphasized the strategic significance of BTC and compared the German government’s actions unfavorably to the strategic perspective the United States holds towards Bitcoin. She expressed her concerns to Saxony State Minister President Michael Kretschmer, Finance Minister Christian Lindner, and Finance Minister Olaf Scholz, urging them to reconsider this strategy.
The sale of Bitcoin by the German government reportedly stems from an investigation into the illegal movie streaming website Movie2k.to, during which around 50,000 Bitcoins were seized, now valued at over $3 billion.
According to blockchain intelligence company Arkham Information, in the past two days, the German government transferred 1,300 BTC (approximately $76 million) to exchanges like Kraken, Bitstamp, and Coinbase. They also moved 1,700 BTC (around $99 million) to address 139Po. These funds may be moved to institutional services or over-the-counter trading deposits. Currently, the German government still holds 40,359 BTC in marked addresses, with a total value of approximately $2.3 billion.