UK government to sell over $4 billion worth of Bitcoin? Market faces major test
Reeves' economic agenda: Selling Bitcoin to get funds
According to Bloomberg, UK Chancellor of the Exchequer Rachel Reeves may plan to sell the UK government's Bitcoin assets, worth about £3.9 billion ($5 billion), to support her economic agenda. These Bitcoins were obtained through legal actions, including seized assets in major money laundering cases. In these actions, the Crown Prosecution Service retained about £2 billion worth of Bitcoin.
UK's cryptocurrency stance: from unclear to potential change
Although cryptocurrency was not mentioned in the manifesto of British Prime Minister Keir Starmer, how the new government will treat Bitcoin and cryptocurrency after its landslide victory has attracted widespread attention. The previous Conservative government, led by former Prime Minister Rishi Sunak, had attempted to implement comprehensive cryptocurrency regulation to transform the UK into a global Web3 innovation center.
Impact of Germany's Bitcoin Sell-off: Will the UK follow suit?
Data from crypto intelligence platform Arkham shows that as of July 19, the British government holds about 61,245 bitcoins, worth more than $4 billion. Recently, the German government sold nearly 50,000 bitcoins, causing the price to fall by 15%. If the UK chooses to sell off on a large scale, its market impact may be more significant.
Looking ahead: A critical moment for the Bitcoin market
Reeves' decision will have a profound impact on the market. At such a critical moment, the market is waiting for her next move. No matter which strategy is ultimately chosen, this decision will be an important turning point for Bitcoin and the entire crypto market.
