Today, the news that the German government has liquidated all its Bitcoins shocked the entire cryptocurrency community! There is only $1.85 left in the wallet. While this news has brought benefits to the cryptocurrency community, it has also sparked heated discussions in the market. Many cryptocurrency friends have questioned the future of digital currencies. It has also affected the global attitude towards digital assets. Their liquidation this time is by no means as simple as selling off and smashing the market!
The German government started selling bitcoins on June 19th, and has completely sold them today. A total of 2.9 billion dollars worth of bitcoins were sold in this liquidation. After the liquidation, they gave the reason for the sale. They said that they were "concerned about the volatility and potential risks of cryptocurrencies, so they sold them this time." Netizens commented below. Some more rational netizens commented that "this is a pirated movie website that was seized. The sale is a procedure. We have to do it and cannot take the risk of volatility." Some more extreme netizens directly criticized the German government.
It is inevitable that they will sell off the bitcoins in their hands, after all, these bitcoins are seized. Even if the German government really wants to reserve them, it will not do so in this way. Recently, a US congressman said in an interview with FOX, "If our country can store some bitcoins, the US dollar will be even more powerful." In fact, this shows an attitude of the West. Therefore, it is entirely possible for the German government to reserve bitcoins.
There are several reasons why they liquidated their Bitcoin this time:
1. According to the procedure, the seized Bitcoins must go through the liquidation procedure, which is also an explanation to the people.
2. Guide market sentiment. Their liquidation was also done through market makers, not just selling in a ruthless manner, so there is a component of guiding the market. We are used to calling this kind of event bad news, which is actually forcing the market to hand over chips and find a reason for the decline.
3. Financial constraints. I think this is the main reason. To put it bluntly, the government has no money and wants funds to fill the treasury.
The news in the market is chaotic and needs us to analyze rationally. In fact, the news that has a direct impact on the cryptocurrency market is the interest rate cut in the United States. This is why the market has no big reaction whether it is good or bad news. Capital just takes advantage of such an opportunity to blow up contracts.
The subsequent Mentougou incident was also intended to stimulate the market to sell off. Compared with the German government's sell-off, the compensation for the Mentougou incident seemed more moderate because it was procedural and phased, and was easier to be digested by the market. At the same time, Ethereum also broke the news today, saying that the US SEC kept its mouth shut about the news of the Ethereum spot ETF's approval and did not make any comments. This also triggered speculation among coin friends, but most coin friends speculated that the probability of passing was relatively high. The specific results will have to wait for the specific news on the 18th.
The influence of the German government has completely ended today. Whether good or bad, it has become a thing of the past and cannot have a substantial impact on the market. Bitcoin's big correction is still ongoing. This bull market is mainly a contest between capitals. While we are worried about selling pressure, we cannot ignore the dilution capacity of the market. Just like the selling pressure in Germany, it did make coin friends worry about the market's ability to bear it at the beginning, but the facts are not as bad as imagined. Therefore, more people remain positive about the market's resilience. If you have any different opinions, you can discuss them together.
