As a long-term crypto investor with a substantial portfolio, I cannot help but feel dismayed by the recent actions of the German government. The news that they liquidated approximately $3 billion worth of Bitcoin during a criminal probe leaves me feeling uneasy, to say the least.
Between June 19 and July 12, the German government disposed of around 49,858 Bitcoin tokens, which were worth about €2.6 billion or $2.9 billion at the time.
Considered a drastic response in the midst of an ongoing investigation, the sales have been linked to a criminal probe. However, many politicians and business leaders have voiced their firm opposition and disdain towards the extensive scale of the liquidation.
Despite the government’s pledge that the sales would benefit the market, Bitcoin’s value dropped by over 22% during the sale period. The price fell from a high of $65,695 to $53,717.
Despite the supposed caution, there’s growing skepticism about the true market effect of this massive sale, given the recent sharp price drop.
Michael Saylor Gives His Two Cents
As a researcher studying the latest developments in the world of technology and finance, I can’t help but express my disagreement with the German government’s recent decision, a stance shared by MicroStrategy’s chairman, Michael Saylor. He is a recognized advocate for Bitcoin and has been vocal about his opposition to this particular policy.
Saylor boldly conveyed his strong belief in Bitcoin through a humorous German statement on social media: “Until your Bitcoin supply runs dry, it’s not a crisis.” His comment carried a hint of sarcasm, suggesting that running out of Bitcoin is an unexpected predicament worthy of concern.
Es ist kein Notfall, bis du kein #Bitcoin mehr hast.
— Michael Saylor (@saylor) July 17, 2024
Michael Saylor directed MicroStrategy to make regular investments in Bitcoin starting from 2020. With an impressive $6.2 billion unrealized profit, the company shelled out a substantial $8.3 billion on this prominent digital asset. Fervent about the world’s most favored cryptocurrency, Saylor advocates that modern financial approaches should embrace it.
Legislator Shares Saylor’s Views On Bitcoin
German legislator Joana Cotar aligns with Michael Saylor in expressing disapproval. She advocates for individuals to possess Bitcoin as a backup and laments the government’s action of disposing of their holdings.
At a time when Wall Street elites and other financial heavyweights are now recognizing Bitcoin, she dismissed the act of selling as being pointless.
In contrast to Germany’s liquidation process, El Salvador’s adoption of Bitcoin as a legal tender in 2021 has faced less criticism. The Central American country now holds approximately 5,508 Bitcoins valued at around $300 million.
Central America’s proactive approach sees Bitcoin regarded as standard currency, leading to the establishment of regulatory frameworks for private investment banks dealing with this and other digital assets.
The legislation in El Salvador indicates a growing conviction among countries that Bitcoin could be an asset valuable for their respective economies.
As a researcher studying the dynamics of global financial markets, I’ve come across an intriguing observation: The openness of a certain nation towards Bitcoin contrasts sharply with Germany’s choice to dispose of its reserves. This discrepancy paves the way for an engaging debate on how virtual currencies might influence national economies.
Bitcoin enthusiasts will be monitoring closely the ongoing worries raised by Saylor about significant crypto sell-offs in Germany over the next few days to weeks.
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2024-07-20 04:12