German Lawmaker Calls for Halt to Bitcoin Sell-Off
German Lawmaker Urges Government to Halt Bitcoin Sell-Off Amid Market Turmoil
Joana Cotar, an independent member of the Bundestag, Germany’s legislative chamber, has made a bold call to the government to cease the ongoing Bitcoin (BTC) sell-off that has rocked the cryptocurrency market. The sell-off has led to a significant 10% drop in Bitcoin’s price over the past two weeks, prompting concerns among investors and lawmakers alike.
In a letter addressed to the government, Cotar emphasized the growing recognition of Bitcoin as a valuable asset class and a promising investment for the future, citing its remarkable price surge. She highlighted that traditional financial institutions now view Bitcoin as a real asset with properties akin to “digital gold,” making it a suitable addition to the state treasury.
Cotar pointed out that governments worldwide are reassessing Bitcoin’s role in fostering innovation or imposing stricter regulations on its ownership and transactions. She acknowledged the challenges in understanding the benefits of Bitcoin for individuals, governments, and politicians alike.
The lawmaker stressed that a well-designed Bitcoin strategy could reshape a country’s development, promote economic prosperity, and safeguard fundamental freedoms for all citizens. As Bitcoin gains acceptance globally, Cotar believes more nations will consider integrating it into their financial and economic systems.
Cotar outlined several advantages for the German government in retaining its Bitcoin holdings instead of selling them. Firstly, including Bitcoin in the treasury diversifies a nation’s assets, reducing risks associated with overexposure to a single asset class. Secondly, Bitcoin’s scarcity and deflationary nature make it an attractive option for wealth preservation, protecting national reserves from inflation and currency devaluation.
Furthermore, Cotar highlighted that including Bitcoin in the treasury can enhance overall portfolio performance, with studies showing its risk-adjusted returns surpassing those of traditional investments like stocks and bonds over the long term. She advocated for a Bitcoin-friendly legal framework in Germany to promote research and development in the financial and technology sectors, attract talent, and foster collaboration between private companies, government institutions, and the scientific community.
Despite Cotar’s plea, the German government sold another batch of confiscated BTC worth over $175 million, contributing to the downward pressure on Bitcoin’s price. The sell-off, coupled with the US government’s actions, caused BTC to drop to $56,700 before recovering to its current level of $58,300. The cryptocurrency market remains volatile, with investors closely monitoring developments in the regulatory landscape and government actions regarding Bitcoin.
As the debate over Bitcoin’s role in national treasuries continues, the future of cryptocurrencies as a mainstream asset class remains uncertain. Stay tuned for more updates on this evolving story.