The German government has transferred over 3,000 Bitcoin since 11:11 am UTC, bringing the total BTC volume moved by the government over the last 24 hours to a five-figure amount.
The transactions extend the Bitcoin sell-off trend initiated by the German government on June 19. This trend persists despite calls from parliamentary members, including German lawmaker and BTC activist Joana Cotar, urging the government to “refrain” from continuing these sales. Cotar has consistently advocated for the government to halt its “hasty disposal of state-owned Bitcoin” and instead adopt BTC as a “strategic reserve currency” to mitigate risks associated with the traditional financial system.
Significant BTC Movements in the Last 24 Hours
In the past 24 hours, the German government has recorded a total combined inflow and outflow of over 6,000 BTC, with more than half of this amount being moved out of the government’s wallet. The address, currently holding 35,488 BTC valued at over $2 billion, received 4,340 BTC during the day. However, over 3,000 BTC were subsequently transferred to exchanges or unknown addresses.
Joana Cotar’s Advocacy for Bitcoin Retention
On July 4, Joana Cotar issued a statement to the German government, arguing that retaining Bitcoin could help diversify the country’s treasury assets, promote innovation, and act as a hedge against inflation. She described the decision to sell off BTC holdings as “not only not sensible, but counterproductive.” Despite her warnings, the government proceeded to sell an additional $172 million worth of Bitcoin later that day.
At that time, the government’s wallet held over 42,200 BTC, valued at $2.4 billion. Currently, these values have decreased to just over 35,400 BTC and $2 billion, respectively.
Impact of Mt. Gox Repayments
The recent announcement by the defunct crypto exchange Mt. Gox to begin repaying its Bitcoin and Bitcoin Cash debts has further added to the ongoing market sell pressure. Nobuaki Kobayashi, the trustee overseeing the Mt. Gox repayments process, stated in an official release that repayments would commence “in accordance with the Rehabilitation Plan.”
According to a MtGoxBalanceBot post on X, the total BTC held by the known addresses of the Trustee was over 94,400 BTC, with over 47,000 BTC having already been moved.
| Date | BTC Inflow | BTC Outflow | Total BTC Held | Value (USD) |
|---|---|---|---|---|
| June 19, 2024 | Initial Sell-Off | – | – | – |
| July 4, 2024 | – | $172 million | 42,200 BTC | $2.4 billion |
| Last 24 hours | 4,340 BTC | 3,000 BTC | 35,488 BTC | $2 billion |
The ongoing Bitcoin sell-off by the German government has sparked significant debate within the crypto community and among financial experts. While some view the sell-off as a strategic move to capitalize on Bitcoin’s high market value, others see it as a missed opportunity to leverage BTC as a hedge against economic instability.
- Pro-Bitcoin Retention View: Advocates like Joana Cotar argue that holding Bitcoin as a reserve currency can protect against inflation and diversify assets.
- Strategic Sell-Off View: Some experts believe the government’s decision to sell off Bitcoin could be a calculated move to realize profits amid market volatility.
The actions of the German government, combined with the Mt. Gox repayments, contribute to a complex landscape for Bitcoin investors. The increased sell pressure could potentially drive Bitcoin prices down in the short term. However, the market’s reaction to these large-scale movements will be critical in determining long-term trends.
The German government’s significant transfer of over 3,000 BTC within a single hour reflects its ongoing strategy to liquidate Bitcoin holdings. Despite opposition from lawmakers like Joana Cotar, the sell-off continues, impacting the broader market dynamics. As the government navigates these decisions and the market responds to Mt. Gox repayments, the crypto community will closely watch these developments for indications of future trends.
Featured image credit: Rubaitul Azad via Unsplash