Since mid-June, the government has put more than 10,000 BTC of assets previously confiscated by the German Federal Criminal Police Office (BKA) from the pirate media platform Movie2k.to up for sale. Earlier this year, the BKA confiscated 49,857 BTC from the site’s operators.
Against the backdrop of the start of payments to investors of the bankrupt crypto exchange MtGox, an active government sale of bitcoins exerted additional downward pressure on the market rate of the first cryptocurrency. At one point, the cost of BTC sank to $51,500.
According to experts at Blockware Intelligence, Germany’s Bitcoin sell-off is strategic
a mistake that deprives the country of additional leverage for financial maneuvering.
“The German government has foolishly transferred over $390 million in BTC to exchanges over the past few weeks to sell for fiat. Selling Bitcoin assets for fiat is a political mistake given its ability to simply print money out of thin air,” Blockware Intelligence said in a newsletter.
On the eve, Bundestag member Joana Cotar criticized the government for selling off state reserves of the first cryptocurrency. The MP claims that this not only increases the volatility of the crypto market, but also reduces Germany’s ability to diversify treasury assets and hedge against inflation.
Source: Bits
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