Bitcoin
German MP calls on government to stop selling Bitcoin
Bundestag MP Joana Cotar has harshly criticized the German government’s recent decision to sell a substantial part yours Bitcoin participations.
The German government recently transferred over $195 million worth of Bitcoin to several cryptocurrency exchanges, including Coinbase, Kraken, and Bitstamp.
The change contributed to increased market volatilitywith Bitcoin prices experiencing notable fluctuations. Critics argue that such large-scale government liquidations could have long-term negative impacts on the stability of the cryptocurrency market.
The sales stem from assets seized during a high-profile investigation into the illegal movie streaming site Movie2k.to, which resulted in the confiscation of approximately 50,000 BTC, now valued at over $3 billion.
The sales have sparked controversy and debate both inside and outside Germany as the government continues to liquidate assets seized in a high-profile case. Critics argue that large-scale government liquidations could have long-term negative impacts on Bitcoin’s value and stability.
Counterproductive approach
In a series of tweets, Cotar condemned the government’s action, contrasting it with discussions in the US, where Bitcoin is being considered a strategic reserve currency.
She addressed her concerns to Saxony’s Minister of Finance, President Michael Kretschmer, Finance Minister Christian Lindner and Chancellor Olaf Scholz, asking them to rethink the strategy.
She emphasized the counterproductive nature of this approach and invited employees to attend an upcoming speaking event titled “Bitcoin Strategies for Nation States” on October 17. The event will be attended by Samson Mow, CEO of JAN3 and a prominent Bitcoin strategist.
The discussion will focus on how policymakers can leverage Bitcoin to bolster their national economies. Mow is expected to provide insights into the potential benefits of holding Bitcoin as part of national financial strategies, a topic that is gaining traction around the world.
The event will also discuss the issuance of Bitcoin-backed government bonds to attract a new class of investors interested in Bitcoin-denominated fixed-income securities. Such bonds, Mow suggests, could provide a stable source of funding for critical infrastructure projects, spurring economic growth and innovation.
The event draws parallels with El Salvador’s pioneering move in 2021 to adopt Bitcoin as legal tender, highlighting the potential for similar initiatives to drive economic transformation. Mow’s experience advising governments such as those in El Salvador and Mexico lends credibility to his recommendations.
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Bitcoin
Bitcoin (BTC), Stocks Bleed as China’s Surprise Rate Cut Signals Panic, Treasury Yield Curve Steepens
Risk assets fell on Thursday as China’s second rate cut in a week raised concerns of instability in the world’s second-largest economy.
Bitcoin (BTC)the leading cryptocurrency by market cap, is down nearly 2% since midnight UTC to around $64,000 and ether (ETH) fell more than 5%, dragging the broader altcoin market lower. The CoinDesk 20 Index (CD20), a measure of the broader cryptocurrency market, lost 4.6% in 24 hours.
In equity markets, Germany’s DAX, France’s CAC and the euro zone’s Euro Stoxx 50 all fell more than 1.5%, and futures linked to the tech-heavy Nasdaq 100 were down slightly after the index’s 3% drop on Wednesday, according to the data source. Investing.com.
On Thursday morning, the People’s Bank of China (PBoC) announced a surprise, cut outside the schedule in its one-year medium-term lending rate to 2.3% from 2.5%, injecting 200 billion yuan ($27.5 billion) of liquidity into the market. That is the biggest reduction since 2020.
The movement, together with similar reductions in other lending rates earlier this week shows the urgency among policymakers to sustain growth after their recent third plenary offered little hope of a boost. Data released earlier this month showed China’s economy expanded 4.7% in the second quarter at an annualized pace, much weaker than the 5.1% estimated and slower than the 5.3% in the first quarter.
“Equity futures are flat after yesterday’s bloody session that shook sentiment across asset classes,” Ilan Solot, senior global strategist at Marex Solutions, said in a note shared with CoinDesk. “The PBoC’s decision to cut rates in a surprise move has only added to the sense of panic.” Marex Solutions, a division of global financial platform Marex, specializes in creating and distributing custom derivatives products and issuing structured products tied to cryptocurrencies.
Solot noted the continued “steepening of the US Treasury yield curve” as a threat to risk assets including cryptocurrencies, echoing CoinDesk Reports since the beginning of this month.
The yield curve steepens when the difference between longer-duration and shorter-duration bond yields widens. This month, the spread between 10-year and two-year Treasury yields widened by 20 basis points to -0.12 basis points (bps), mainly due to stickier 10-year yields.
“For me, the biggest concern is the shape of the US yield curve, which continues to steepen. The 2- and 10-year curve is not only -12 bps inverted, compared to -50 bps last month. The recent moves have been led by the rise in back-end [10y] yields and lower-than-expected decline in yields,” Solot said.
That’s a sign that markets expect the Fed to cut rates but see tighter inflation and expansionary fiscal policy as growing risks, Solot said.
Bitcoin
How systematic approaches reduce investor risk
Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.
Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.
Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.
July 24, 2024, 5:30 p.m.
Updated July 24, 2024, 5:35 p.m.
(Benjamin Cheng/Unsplash)
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Bitcoin
India to Release Crypto Policy Position by September After Consultations with Stakeholders: Report
“The policy position is how one consults with relevant stakeholders, so it’s to go out in public and say here’s a discussion paper, these are the issues and then stakeholders will give their views,” said Seth, who is the Secretary for Economic Affairs. “A cross-ministerial group is currently looking at a broader policy on cryptocurrencies. We hope to release the discussion paper before September.”
Bitcoin
Bitcoin (BTC), Ether (ETH) slide as risk aversion spreads to crypto markets
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Ether fell about 6%, the most in three weeks, and was trading at $3,188 as of 6:45 a.m. Thursday in London. Market leader Bitcoin fell about 3% to $64,260.
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