The German government has transferred over 3,000 Bitcoin within one hour, bringing the total BTC volume moved by the authorities in the last 24 hours to a five-figure amount. These transactions are part of a broader sell-off trend initiated on June 19, despite opposition from some members of parliament.
Call for Strategic Reserve
German lawmaker and Bitcoin advocate Joana Cotar has urged the government to halt its rapid disposal of state-owned Bitcoin. Cotar argues that retaining Bitcoin could serve as a strategic reserve currency, providing protection against the risks associated with the traditional financial system. She believes that maintaining BTC in the country’s treasury could aid in diversifying assets, promoting innovation, and hedging against inflation.
Arkham Intelligence data showing the last four hours of transactions made by the German Government wallet. Source: Arkham Intelligence
Heavy Bitcoin Movements
In the last 24 hours, the government-controlled wallet, currently holding 35,488 BTC worth over $2 billion, has seen significant activity. The address received 4,340 BTC, of which over 3,000 BTC have been transferred to exchanges or unknown addresses. This activity follows a series of transactions since June 19, which saw more than half of the received BTC being moved out of the wallet.
Political Disagreement on BTC Strategy
On July 4, Cotar issued a statement urging the government to reconsider its strategy of selling BTC, describing the move as “counterproductive.” Despite her appeal, the government proceeded to sell another $172 million worth of Bitcoin later that day. The wallet in question, which previously held over 42,200 BTC worth $2.4 billion, has now reduced its holdings to just over 35,400 BTC valued at $2 billion.
Additional Market Sell Pressure
The market sell pressure is further compounded by the recent announcement from the defunct crypto exchange Mt. Gox. The exchange has begun repaying its BTC and Bitcoin Cash debts, adding to the ongoing sell pressure. Nobuaki Kobayashi, the trustee overseeing the repayments, confirmed that the process is being carried out in accordance with the Rehabilitation Plan. A recent update from MtGoxBalanceBot indicated that over 47,000 BTC of the trustee’s known addresses, which hold a total of 94,400 BTC, have been moved.
