If you had asked me only a few months ago who the most disruptive market player in cryptocurrency would be, Germany would not have even made my top 10 list. This metric, however; the German government has been acting like ‘jeets’ as they have been moving hundreds of millions in Bitcoin ($BTC) to their centralized exchanges (CEXs).
This move shook the market and left investors in a great deal of fear. The FUD which has led to a massive selloff and liquidation of leveraged trades.
The day seemed to be going on like every normal day until a massive red candle was formed within one hour for both $BTC and $ETH. On closer look, it was discovered that the Germany government who were bullish only a few hours earlier had moved about 900 Million worth of BTC to their CEX wallet.
Large movements like this are usually managed carefully to minimize its negative impact on the market. This is something that notable figures like Elon Musk do. He’d usually announce the planned move months in advance. Unfortunately, the German government have taken a different approach to doing this by dumping it fast and unplanned.
Whether they have an agenda is left to be figured out as a few persons have considered this a market manipulation move. This abrupt selloff has many investors struggling to anticipate what happens next amidst the market volatility.
Despite this bearish outlook, I am still very much bullish on the long term. This (and everything else) is only a short term disruption, just a little blip on the radar. The macroeconomic forces propelling the rise and adoption of cryptocurrencies have been unaltered. The reality of this space is that the markets slides and glides on volatility. It is a characteristic trait cryptocurrency and digital currencies generally. This one just happens to be one of the more newsworthy event but barely changes anything in the long run.
