- German MP Joana Cotar urged her government to reconsider the sale of the seized BTC holdings.
- The ongoing BTC dump has caused the largest liquidation crisis after the FTX.
The crypto market fell lower this week Bitcoin [BTC] fell to $53,000, the lowest level since February 2024.
Market sentiment has deteriorated due to enormous selling pressure from entities such as the German government.
German authorities have released 50,000 BTC seized from illegal streaming site Movie2k.to. It moved 3K BTC on July 4, and another 1.95K BTC was moved in the past 12 hours, according to Arkham Intelligence facts.
German Bitcoin sales spark criticism
These were part of the BTC whale dump that drove down BTC prices and sparked a market-wide bloodbath that even angered German MP Joana Cotar.
Cotar urged her government to reconsider the sell-off. Part of her translated statement on X (formerly Twitter) read,
“Instead of keeping #Bitcoin as a strategic reserve currency, as is already being discussed in the US, our government is selling on a massive scale.”
Cotar also accompanied a letter supporting arguments as to why the German government should halt the BTC sell-off.
She added that BTC provides the government with diversified state assets and long-term value preservation against currency devaluations and inflation.
Essentially, she urged the government to adopt a Bitcoin strategy.
“Instead of a sale, I recommend developing a comprehensive Bitcoin strategy. This could include keeping Bitcoin in the treasury, issuing Bitcoin bonds or creating a supportive regulatory environment.”
Crypto market commentator Samson Mow echoed Cotar’s argument, viewing the government’s sell-off of BTC as the ‘height of idiocy.’
In the meantime, if selling pressure continues, the BTC dump could extend into the weekly order block and February consolidation zone of $52.9K-$50K, highlighted in cyan.
Source: BTC/USDT, TradingView
The extended retracement and retest of $53,000 has led to massive liquidations, reaching nearly $700 million across the market in the last 24 hours.
BTC was responsible for $226 million in liquidations during the same period, with long positions posting massive losses worth more than $180 million.
According to a market observerthe mass liquidation was the largest since the FTX saga in November 2022.
Source: x/Honeybadger