Bitcoin

Impact

<h2 id="key-points">Key Points</h2>
<ul>
 <li>German MP Joana Cotar has urged the government to reconsider its massive sell-offs of Bitcoin.</li>
 <li>The ongoing BTC dump has resulted in the biggest liquidation since the FTX crisis.</li>
</ul>
<p>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.</p>
<p>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.</p>
<h2 id="german-bitcoin-selling-sparks-controversy">German Bitcoin Selling Sparks Controversy</h2>
<p>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.</p>
<p>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’.</p>
<h2 id="impact-on-the-market">Impact on the Market</h2>
<p>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.</p>

German MP Joana Cotar Suggests Alternatives to Bitcoin Trading

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CoinEagle.com

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