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Recently, the German government liquidated Bitcoin valued at approximately $3 billion. Between June 19 and July 12, they sold 49,858 BTC tokens for around €2.6 billion ($2.9 billion). This extensive sale was connected to an ongoing criminal investigation and deemed an "emergency" measure.
Market Impact and Criticism
Despite assurances that the sales were conducted in a market-supportive manner, Bitcoin's value fell by over 22% during this period, dropping from $65,695 to $53,717. This significant price decrease has led to doubts about the true market impact of such a large sell-off.
Michael Saylor's Response
Michael Saylor, chairman of MicroStrategy and a prominent Bitcoin advocate, has been vocal in his criticism of the German government's decision. On social media, he posted in German, “Until you run out of Bitcoin, it’s not an emergency.” This comment underscores his strong belief in Bitcoin's potential and his view that selling the cryptocurrency is a misstep.
Political Opposition
German lawmaker Joana Cotar also criticized the government's decision, arguing that Bitcoin should be retained as a reserve. She highlighted the imprudence of selling Bitcoin at a time when major financial institutions are increasingly recognizing its value.
Comparisons with El Salvador
The German liquidation has drawn more backlash compared to other countries like El Salvador, which adopted Bitcoin as legal tender in 2021. El Salvador holds 5,508 Bitcoin, worth about $300 million, and treats it as regular currency, integrating it into its economy. This stands in stark contrast to Germany's sell-off, sparking discussions about the role of virtual currencies in national economies.
Future Implications
The controversy surrounding Germany’s massive Bitcoin liquidation has attracted significant attention from the crypto community. Michael Saylor’s concerns and the broader debate on Bitcoin's economic impact will likely be closely monitored in the coming weeks.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.