The early parliamentary elections in Germany, which took place on February 23, 2025, may significantly impact the cryptocurrency market. Following the collapse of Olaf Scholz's coalition and the rise in popularity of the CDU/CSU led by Friedrich Merz, as well as the far-right 'Alternative for Germany' (AfD), investors are closely monitoring political changes in Europe's largest economy. The CDU/CSU advocates for strict regulation of cryptocurrencies, emphasizing the fight against money laundering. Merz's victory could lead to stricter rules for exchanges, which would reduce liquidity and deter some investors. In contrast, the AfD, which is gaining popularity, declares a more liberal approach that could potentially stimulate capital inflow into the crypto market. However, its pro-Russian stance raises concerns about stability. The geopolitical context is also important: the easing of sanctions against Russia, which is being discussed in the context of negotiations with the US, could push investors towards Bitcoin as a 'safe asset.' At the same time, Germany's economic stagnation due to the loss of cheap gas exerts pressure on risk assets, including altcoins. The market is already reacting: Bitcoin fluctuates around $100,000, while altcoins show correction. The outcome of the elections will determine whether Germany becomes a driver of crypto innovation or a brake on the industry in Europe. Investors should prepare for volatility.
#German $XRP
