The crypto market buzzes with speculation as the UK might follow Germany’s recent Bitcoin sell-off move. Rachael Reeves, the new Chancellor of the Exchequer, is under pressure to fund her economic plans. Now, with the Britain government holding a substantial BTC stash, rumors suggest a possible market dip if Reeves decides to sell.
The rumors have also fueled discussions over another possible dip in the flagship crypto’s price in the coming days if the situation holds true.
UK Planning For Bitcoin Selloff?
Rachael Reeves, a former Bank of England economist, faces tough economic conditions as the new Chancellor. Bloomberg reports that Reeves could sell the UK’s seized Bitcoin assets, valued at around £3.9 billion or $5 billion, to support her economic agenda. Notably, this move echoes the recent BTC dump by the German government, which significantly impacted the cryptocurrency market.
Meanwhile, the Britain govt. acquired these BTC holdings through legal actions, including a major case against money launderer Jian Wen. The Crown Prosecution Service secured Wen’s assets, including BTC, valued at around £2 billion at the time.
With the current value at £3.9 billion, Reeves has a substantial resource at her disposal. However, selling these assets could lead to a significant dip in BTC price, similar to what happened after Germany’s recent move.
For context, the German government sold nearly 50,000 BTC, contributing to a 15% price drop. Reeves must consider this precedent while deciding whether to liquidate the Bitcoin stash. Bloomberg suggests that Reeves might avoid Gordon Brown’s infamous gold sale mistake, which saw Britain sell gold at low prices before a market surge.
Also Read: Institutions Bet Big On $100,000 Bitcoin Call Options
Possible Impact On The Market
Selling Bitcoin could provide quick funds for Reeves’ economic plans, according to Bloomberg. However, the move might lead to market volatility. BTC price could dip further, affecting investors and the broader crypto market.
Having said that, Reeves might consider balancing the immediate financial gain against the potential long-term market consequences. The report suggests that a more strategic approach might involve relaxing crypto regulations to offset potential market impacts.
Bytecoin’s Charlie Morris notes the UK’s current anti-crypto stance. Easing regulations could attract investment and demonstrate the new government’s support for technology and innovation. Such a move might mitigate the negative effects of a BTC selloff.
Reeves’ decision will be closely watched by market analysts and crypto enthusiasts. With international criminals increasingly using BTC, more crypto assets might come under government control. This ongoing influx could provide a recurring source of funds, but the market response will depend on how Reeves manages these assets.
As of writing, Bitcoin price has recovered from its recent dip and traded above the $65,300 mark. Over the last 24 hours, BTC has dropped to $63,246, indicating the heightened volatile scenario in the market. Moreover, its trading volume also rose 11% to $30.11 billion during writing.
Also Read: Why Is XRP Price Down Today?
The post UK To Follow Germany’s Bitcoin Dump Move? More BTC Dip Ahead? appeared first on CoinGape.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed