Every day governments and law enforcement confiscate crypto and then dump it on the markets as a way to fund their wars. It's a wild system of self funding much like the SEC does to issue lawsuits that then fund all of their lawyers. Well as part of that governments are getting their hands on some large crypto funds due to raids etc.

In one such recent case Germany has reported to have 2 billion in bitcoin. This is from a Jan. 2024 seizure of close to 50,000 bitcoins. The funds were seized from the operators of Movie2k.to a movie piracy site that moved to an all crypto system after coming under attack back in 2013.

After selling off a decent amount of that bitcoin the German government now holds roughly 1.9 billion dollars worth of the asset or 32,488 Bitcoin. This has been blamed for the current massive sell pressure on Bitcoin as of late which is crashing the price. But when you step back and take a look at it 1.9 billion dollars is a drop in the bucket for the bitcoin market cap at the moment which is 1.1 trillion dollars.

That's roughly 0.1% of the current value of bitcoin so to point the finger at it is legit crazy!

There's even others within German who are calling for them to hold on to the asset in their treasury and honestly that's the turning point for crypto is when governments start to grab up the asset we could see a massive explosion in value.

So there must be other things at play right? To be tanking the price this hard for bitcoin along with just about ever other crypto asset.

This comes down to a few things taking place at the moment.

The Unknown

Investors hate the unknown. Most smart investors won't put their money or large sums on money into something high risk. Instead they pretty much want to be 100% sure they are going to turn a profit on their investment.

There are a number of unknown factors at the moment but the biggest one wont be figured out until November of this year with the US Elections. I predict if we see Trump win crypto will rally. On the flip side of that if Biden wins crypto might still climb but it's going to be under heavy pressure like it has been for the last 4 years of his presidency. I legit don't care who you vote for. You vote how you want but to me this is a clear if you vote one way you are going to have a pro government and if you vote the other you will have more of the same of the trash against crypto we have had for the last four years. (Right now they are trying to save face by not really doing anything with crypto.)

Futures Expiring

Futures trading is still a thing and honestly I feel like it's the dumbest thing. It's just like gambling where you bet if the price will move up or down and never really hold any of the real core asset. To me it's like the stock market gamble and how it ever got okayed is beyond me and that goes for any futures contract not just crypto.

Those futures expire and when they do they can often sink the price of bitcoin or the crypto attached to it.

Overall Sentiment

From all of the crazy hype of the last year there really hasn't been all that much happening in the crypto space. We haven't seen any big new things released and the ones that we have could honestly be written off as some rather worthless projects that really provide little to no value such as just about every telegram TON program happening right now. There always seems to be a hype cycle and right now it seems to be that (however starting to fade a little at the moment due to no tokens being airdropped and listed just yet besides NOT which is doing well)

What other reasons or reason do you feel the overall crypto markets have been selling off? Let me know in the comments!

Posted Using InLeo Alpha