German authorities recently liquidated around $3 billion worth of Bitcoin. Between June 19 and July 12, the German government sold 49,858 BTC tokens for around €2.6 billion, or $2.9 billion.
Considered an “emergency” measure, the sale was linked to an ongoing criminal investigation. However, politicians and company executives alike have expressed mighty disagreement and disapproval over the extensive liquidation.
The government assured that the sale was conducted in a way that supported the market, but during the sale the value of bitcoin fell by more than 22% – from $65,695 to $53,717.
Despite the supposed caution, many have begun to doubt the actual impact of such a gigantic sell-off on the market in delicate of the recent piercing decline.
Michael Saylor gives his two cents
MicroStrategy CEO and well-known Bitcoin advocate Michael Saylor is among the most ardent opponents of the German government’s decision.
Saylor expressed his disgust on social media, posting in German: “Until you run out of Bitcoins, it’s not a crisis situation.” His slightly mocking remark demonstrated his overwhelming belief in Bitcoin’s potential, suggesting that running out of cryptocurrency is a crisis situation in and of itself.
It’s not an emergency until you do it #Bitcoin Do you have more.
— Michael Saylor⚡️ (@saylor) July 17, 2024
Michael Saylor recommended MicroStrategy consistently invest in Bitcoin in 2020. The company spent $8.3 billion on Bitcoin from $6.2 billion in unrealized profit. Saylor, committed to the world’s most popular digital asset, believes that current financial strategies need to integrate it.
Lawmaker shares Saylor’s views on Bitcoin
German lawmaker Joana Cotar joins Michael Saylor in her chorus of criticism. Cotar said Bitcoin should be kept on hand as a reserve and regrets the government’s decision to sell its holdings.
Especially at a time when Wall Street titans and other financial institutions are starting to realize that Bitcoins called the sale pointless.
BTC market cap currently at $1.2 trillion. Chart: TradingView.com
The liquidation in Germany has sparked a much larger reaction than in other countries, such as El Salvador. Bitcoin became legal currency for El Salvador in 2021, and the country currently has 5,508 Bitcoins worth about $300 million.
Acting proactively, the Central American country is treating Bitcoin as a regular form of money and is implementing regulations to establish private investment banks for other digital assets as well.
The regulations in El Salvador show that more and more countries believe Bitcoin can prove to be a valuable instrument for their own economies.
The fact that the country is welcoming Bitcoin is a far cry from Germany’s decision to sell its reserves. It opens up a discussion about the impact of virtual currencies on national economies.
In the meantime, Saylor’s concerns about mass liquidations of cryptocurrency assets in Germany will be the subject of close attention from bitcoin enthusiasts in the coming days and weeks.
Featured image from VOI, chart from TradingView
