July 6, 2024 Grandpa checks in

The market is worried about the Bitcoin crash. Let me inform you of the situation. Since June 19, the German government, the US government and Mentougou have transferred a total of 17,788 Bitcoins worth 1.08 billion US dollars. Currently, the German government still has 41,226 Bitcoins, the US government has 213,297 Bitcoins, and Mentougou has 141,687 Bitcoins, totaling 396,210 Bitcoins, which are worth more than 20 billion US dollars at the current price.

Objectively speaking, the recent market pressure is quite large. Yesterday, the German government transferred 500 coins to market makers again, which means that the German government's selling has not ended. In fact, what the market lacks now is confidence, and lack of confidence leads to insufficient liquidity, which is the biggest risk at present.

The current market value of Bitcoin is 1.1 trillion. As long as the 20 billion USD Bitcoin is not dumped into the market in the short term, it is not difficult to digest. However, one thing that is certain is that the Bitcoin held by the government will not be dumped into the market intensively, because different entities have different policies. After all, the procedures for changing such a large amount of assets are not simple.

The market's next situation mainly depends on the German government's asset movements. If the sell-off continues, the price will continue to fall, and vice versa, it will take time for the market to react. In fact, the short-term rebound, as I said yesterday, will be an oversold rebound in the next two days. Of course, because this wave of plunge is caused by real volume, the short-term rebound to a certain height can be done in waves first. I expect there will be a period of volatility. In the medium and long term, you can boldly buy points and don't be afraid of short-term fluctuations.I have explained the specific logic in my promotional article "Bitcoin plummets, the culprit is the German government! How can we correctly buy at the bottom?"

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