tl;dr
The German government's recent large-scale transfer of Bitcoin (BTC) to major crypto exchanges, totaling nearly $76 million, has raised concerns among crypto enthusiasts. Joana Cotar, a member of the Bundestag, criticized the government's actions, emphasizing the potential of Bitcoin as a strategic ...
German government's frequent Bitcoin transfers to exchanges causing concern
The German government's recent large-scale transfer of Bitcoin (BTC) to major crypto exchanges, totaling nearly $76 million, has raised concerns among crypto enthusiasts. Joana Cotar, a member of the Bundestag, criticized the government's actions, emphasizing the potential of Bitcoin as a strategic asset for investors to diversify their portfolios and hedge against inflation. She invited officials to her upcoming lecture on Bitcoin, highlighting its role in mitigating investment risks. Additionally, Cotar and other industry figures recognize Bitcoin's appeal as a hedge against global economic instability, emphasizing its potential to store long-term value.
Stop German Government’s Bitcoin Transfer
The German government’s frequent transfer of Bitcoin (BTC) to exchanges is making crypto enthusiasts uncomfortable and a few people have voiced their concerns. In the last few weeks, the German government has been performing a lot of transactions that involve the transfer of BTC. Notably, 500 BTC worth $29.05 million went to Bitstamp, 400 BTC worth $23.24 million to Coinbase, and another 400 BTC to Kraken. The total offloading consisted of nearly $76 million. Bitcoin price dropped below $58,000 shortly after this massive liquidation, raising concerns of a further dip. In response to this, Joana Cotar slammed the government’s action, asking that it stop its Bitcoin selling spree.
More Entities See BTC as Inflation Hedge
Cotar sees the capacity of Bitcoin acting as a hedge against inflation and currency devaluation due to scarcity. Jeremy Allaire, CEO of Circle, and Anthony Scaramucci of SkyBridge Capital also highlighted the growing appeal of Bitcoin as a hedge against global economic instability, emphasizing the coin’s fixed supply and the possibility of storing value for a long time.