As Bitcoin prepares for an anticipated surge in volatility following the Federal Reserve's decision on interest rates, reports have surfaced indicating that Germany is seriously contemplating the creation of a national Bitcoin reserve.

According to media reports, the German political party AfD has proposed the establishment of a national strategic Bitcoin reserve, which, in the eyes of its representatives, would allow the country to keep pace with global digital developments. This initiative has sparked widespread discussion within the cryptocurrency community and beyond. The envisioned Bitcoin reserve aims to serve as a form of digital gold reserve, offering financial stability amid an unstable global economy and rising inflation.

The AfD's argument hinges on recognizing Bitcoin as a decentralized asset that is not subject to manipulation by governments and central banks. The party asserts that other countries are already exploring the use of cryptocurrencies as reserve assets, and Germany should not be left behind in this trend.

However, the implementation of this idea faces several obstacles. Firstly, there is considerable resistance from traditional financial institutions and political adversaries who remain skeptical about cryptocurrencies. Secondly, a clear regulatory framework for storing and managing the Bitcoin reserve will need to be developed. Thirdly, the high volatility of Bitcoin poses risks to the state budget that cannot be ignored.

Nonetheless, the mere fact that the possibility of creating a Bitcoin reserve is being discussed in Germany signifies a growing acknowledgment of cryptocurrencies as a significant component of the modern financial system.

Interestingly, a similar initiative was recently proposed by a political party in France, suggesting that German politicians are clearly aligning themselves with the right direction in this regard. Additionally, numerous initiatives aimed at establishing a national Bitcoin reserve are also underway in the United States, though they have yet to gain widespread traction.

Trading recommendations

From a technical standpoint, Bitcoin buyers are currently aiming to reclaim the $113,500 level, which opens a direct path to $115,000, and then it will be just a step away from the $116,700 mark. The most distant target will be the high around $118,400; surpassing this level would indicate a strengthening bullish market. In the event of a decline, buyers will be expected at the $111,600 level. A return of the trading instrument below this area could quickly push BTC down to around $109,300, with the further target at $106,700.

For Ethereum, a clear consolidation above the $4,071 level opens a direct path to $4,173. The most distant target will be the high around $4,259; exceeding this would signify a bullish market and high buyer interest. Should Ethereum decline, buyers will be anticipated at the $3,949 level. A return of the trading instrument below this area could swiftly push ETH down to around $3,818, with the further target at $3,691.

Chart indicators

• Red indicators represent support and resistance levels, where a slowdown or active price increase is expected.
• Green represents the 50-day moving average.
• Blue indicates the 100-day moving average.
• Light green signifies the 200-day moving average.

Crossovers or tests of the moving averages usually halt or set the market's momentum.