Key Points
- German MP Joana Cotar has urged the government to reconsider its massive sell-offs of Bitcoin.
- The ongoing BTC dump has resulted in the biggest liquidation since the FTX crisis.
German MP Joana Cotar has called on her government to rethink its decision to sell off its seized Bitcoin holdings. This comes as the cryptocurrency market takes a hit, with Bitcoin’s value dropping to $53K, the lowest it has been since February 2024.
The market downturn has been exacerbated by significant sell-side pressure from entities such as the German government. German authorities have been offloading a large amount of Bitcoin seized from the illegal streaming site Movie2k.to.
German Bitcoin Selling Sparks Controversy
The large-scale Bitcoin sell-off by the German government has sparked criticism. Cotar has been vocal in her disapproval, urging the government to rethink its strategy. She believes that holding Bitcoin could serve as a strategic reserve currency, providing the government with diversified state assets and long-term value preservation from currency devaluations and inflation.
Cotar advocates for a comprehensive Bitcoin strategy, including maintaining Bitcoin in the state treasury, issuing Bitcoin bonds, or creating a supportive regulatory environment. Her views are echoed by crypto market commentator Samson Mow, who described the government’s Bitcoin sell-off as the ‘peak of idiocracy’.
Impact on the Market
If the selling pressure continues, the Bitcoin dump could extend to the weekly order block and February consolidation zone of $52.9K—$50K. The extended retracement and retest of $53K have triggered massive liquidations, with nearly $700 million liquidated across the whole market in the past 24 hours. Bitcoin accounted for $226 million of these liquidations, with long positions suffering significant losses worth over $180 million. According to one market observer, this massive liquidation is the largest since the FTX saga in November 2022.
