Luxembourg Converts 1% of Sovereign Wealth Fund into BTC

Luxembourg’s Minister of Finance, Gilles Roth, has revealed that the country has converted 1% of its sovereign wealth into bitcoin (BTC). The latest announcement comes amid the crypto market experiencing a notable market correction.

The minister noted that while the fund policy allows the allocation of several other prominent assets, Luxembourg has chosen to invest only in BTC. Additionally, he stated that the recent move isn’t just a mere announcement to seek attention, but an already done deal.

Luxembourg Overlooks Short-term Volatility 

Following the announcement, as the audience cheered, Roth cited a quote by Michael Saylor, the CEO of Strategy, saying, “There’s no second best.” He said the country is in the game for the long haul, not scared or worried about the recent market volatility. 

Furthermore, he disclosed that Luxembourg will hold the leading crypto asset for the longest and believes other countries will follow its lead. He emphasised that as a minister, digital assets are a significant subject that is on everyone’s agenda. 

For further elaboration, Binance founder CZ also urged the public to start buying now or wait until Luxembourg acquires 5, 10, or even 50%. As of the time of writing, the asset was changing hands below $100,000, according to data from CoinGecko.

The leading crypto represents a 3.3% decline in the last 24 hours. This drastic fall may lead to panic and massive sell-offs in the market. Short-term traders may sell out of fear or to avoid losses. 

Institutions Strengthen Positions Despite Market Decline 

Despite the market’s unpredictable behaviour, major institutions are buying in. These big players see the massive drawbacks as an opportunity for acquisition. For instance, business intelligence firm Strategy recently purchased 487 BTC, worth $50 million. Other businesses have followed the entity’s lead, as it solidified its position in the broader crypto sector as the largest corporate BTC holder globally.  

Meanwhile, BTC is not the only coin affected by the market swing. Assets like ETH, BNB, SOL, and other large-cap coins are also bleeding red. Over the last 24 hours, these assets have declined significantly. While many individuals view this event as a risk, other crypto enthusiasts see it as an opportunity to buy in and be part of the evolving financial landscape.

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