Will the Central Bank Include Bitcoin as a Reserve Currency?
There is a recent article on Newsbtc "Whales Dump Ahead Of Bitcoin ATH, More Than 93K BTC Sold Since Peak". The article mentions such events:
Just when the price of Bitcoin was only one step away from creating a historical peak, the giant whales holding Bitcoin began to transfer BTC to centralized exchanges like Coinbase to sell on a large scale.
The giant whales began to sell as many as 93,000 bitcoins when the price of bitcoin reached 19,600. As of writing, the price of bitcoin is about $17,700, a 9.7% drop from the peak.
The release of such selling pressure will indeed put a lot of pressure on the currency price. I am afraid that the market will not be able to recover in a short time. Because other big investors are likely to have similar ideas to join the sell-off, coupled with the tight funding at the end of the year, the market will be in a sideways market or even continue to fall in the short term.
As far as this sell-off is concerned, I think it is not worth it, because the current price is obviously still in the early stage of the big market, and losing the bargaining chip in hand so early is undoubtedly equivalent to giving up the greater gains that may come later. And for giant whales, it is difficult to buy back these coins at a suitable price in the short term. Because the buying of the giant whales can easily cause the price to soar in the short term due to their size, I am afraid that if you want to buy it back quietly, you have to wait until the big bear market comes again in a few years.
Jiang Zhuoer mentioned this point of view in a recent sharing: Central banks of various countries will eventually include Bitcoin in their reserves, it is only a matter of time.
I very much agree with this point of view, and even think that this time may come sooner than we think. Because the consensus and value recognition of Bitcoin has gradually spread from hackers and ordinary people to traditional investors and institutional investors.
One of the most important reasons why everyone is so active in buying Bitcoin is to fight against the actual shrinking of wealth brought about by the excessive issuance of legal currency. The instigators of fiat currency spam are the central banks of various countries who are more aware of the dangers of their actions, and are more concerned about the risk dispersion of their reserves. Therefore, when Bitcoin enters the investment range of institutional investors, it is not far from entering the reserves of central banks.
In fact, the Iranian government has already started to hold Bitcoin. Of course, it is not for the wealth effect of Bitcoin, but to bypass the financial sanctions imposed by the US government. I believe there will be more and more such governments and central banks. The time it takes for Bitcoin to truly enter the mainstream financial circle and establish its kingship in the digital age will be faster than we imagined.
In the past two days, PlusToken was finally sentenced and became a hot topic in many currency circle media. The details of the trial have been disclosed online, but I am concerned about the ultimate whereabouts of the bitcoins held by the gang.
According to more convincing news on the Internet, the 194,000 bitcoins held by the gang were nationalized, but what is interesting is that these bitcoins were finally entrusted to "Beijing Zhifan Technology" to sell. What's more interesting is that the second shareholder of this "Beijing Zhifan Technology" was found to be also a shareholder of Huobi.
So judging from this news, the 194,000 bitcoins are likely to have been sold through the exchange. According to reports, the price of these 194,000 bitcoins was between US$7,000 and US$11,000.
All collected coins may be handed over to the treasury, and the treasury may still have to go through the exchange to release these coins. This can also prove from the side that the exchange will still exist for a long time in the future. This is the biggest point of view in this information.
