Recently, German authorities liquidated Bitcoin valued at approximately $3 billion. Between June 19 and July 12, the German government sold 49,858 BTC tokens for about €2.6 billion, or $2.9 billion.
This sale was deemed an “emergency” measure, linked to an ongoing criminal investigation. However, both politicians and business leaders have expressed strong disagreement and disapproval over the extensive liquidation.
The government assured that the sales were conducted in a market-supportive manner, yet during this period, Bitcoin’s value plummeted by over 22%, from $65,695 to $53,717. Despite these assurances, many are now questioning the true market impact of such a significant sell-off given the recent sharp decline.
Michael Saylor’s Response
Michael Saylor, chairman of MicroStrategy and a prominent Bitcoin advocate, has been one of the most vocal critics of the German government’s decision. Saylor took to social media, posting in German, “t is not an emergency until you run out of Bitcoin.” His somewhat sardonic comment underscored his deep belief in Bitcoin’s potential, suggesting that exhausting the cryptocurrency reserves would constitute a true emergency.
Es ist kein Notfall, bis du kein #Bitcoin mehr hast.
— Michael Saylor⚡️ (@saylor) July 17, 2024
In 2020, under Saylor’s direction, MicroStrategy began consistently investing in Bitcoin. The company, with a $6.2 billion unrealized profit, has spent $8.3 billion on Bitcoin. Saylor remains dedicated to Bitcoin, asserting that modern financial strategies must incorporate it.
Legislative Support for Saylor’s Views
German lawmaker Joana Cotar has joined Michael Saylor in criticizing the government’s decision. Cotar argued that Bitcoin should be retained as a reserve and lamented the government’s choice to liquidate its holdings. She deemed the sale pointless, especially as major Wall Street firms and other financial institutions are beginning to recognize Bitcoin’s value.
The liquidation in Germany has sparked more backlash than similar actions in other countries, such as El Salvador. In 2021, El Salvador made Bitcoin legal tender and now holds 5,508 Bitcoins worth around $300 million. Proactively, the Central American country treats Bitcoin as a regular form of currency and has established regulations promoting private investment banks using other digital assets.
El Salvador’s embrace of Bitcoin contrasts sharply with Germany’s decision to sell its reserves, raising discussions about the impact of virtual currencies on national economies. Saylor’s concerns about Germany’s substantial crypto liquidations will likely be closely monitored by Bitcoin enthusiasts in the coming days and weeks.
Someone also made a funny video about Germany selling their bitcoin holdings
#Bitcoin update pic.twitter.com/rses367YNX
— Charlie (@btc_charlie) July 4, 2024
