Despite the high liquidations and market anxiety, VanEck and minor billionaires perceive Bitcoin’s decline as a purchasing opportunity.
In the wake of the German government and Mt. Gox scandals, the price of Bitcoin (BTC) has continued to plummet, but VanEck remains optimistic.
Traders are apprehensive about market corrections, which are a dreaded occurrence. The daring individuals capitalize on the opportunity to expand their luggage, while the “weak hands” remain in a state of fear.
VanEck views the current Bitcoin collapse as a “4th of July discount” and regards a drop in the price of BTC to the $53,000 range as a “purchase the downturn” opportunity. Santiment, an on-chain platform, also endorses the sentiment, encouraging merchants who are willing to take advantage of the opportunity.
“Markets have persisted in their downward trajectory, and social media are currently exhibiting unprecedented levels of disinformation.” It is uncommon for an hour to pass in which the number of “sell” posts on crypto forums exceeds the number of “purchase” posts. However, we have observed a few of these occurrences in the past 24 hours, including the highest ratio of negative to positive comments in 2024. For traders who are audacious, this presents an opportunity to be a true contrarian and invest in the frustration and rage of the public.
In the midst of the negative market sentiment, crypto researchers have observed heightened levels of dread. This is justified due to the fact that numerous traders incur losses. In the midst of an ongoing massacre, hundreds of thousands are being “rekt.” Coinglass, a platform for derivative data analysis, has reported a total of above $650 million in liquidations.
According to CryptoNagato, a pseudonymous merchant, this is the second-largest liquidation event in the Bitcoin market, following the one that occurred immediately following the FTX collapse in November 2022. All indications suggest that the ongoing sell-off between Mt. Gox and the German government is underway, as their extensive transactions have caused market volatility.
German lawmaker and Bitcoin activist Joana Cotar lashed out at the government in a post on Thursday for its “hurried” actions in the sale of Bitcoin. She urged the state to follow the United States’ example and maintain Bitcoin as a reserve currency, describing the selling frenzy as insensible and counterproductive.
In contrast to the ongoing debate in the United States regarding the use of Bitcoin as a strategic reserve currency, our government is conducting a large-scale sale. Cotar wrote, “I informed Michael Kretschmer, Christian Lindner, and Olaf Scholz of the counterproductive nature of this action and extended an invitation to attend our lecture event, “Bitcoin Strategies for Nation States,” on October 17th at the Paul-Löbe-Haus, featuring Samson Mow.”
The most prominent example of Cotar’s pro-crypto stance was in November, when she supported Bitcoin as legal tender and urged its integration into mainstream German finance.
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