Are You Worried About the US Government's $6.5 Billion Bitcoin Dump?
A recent report revealed that the US government plans to sell $6.5 billion worth of Bitcoin. While this news has caused a stir, here’s why it’s likely an overblown fear:
1) Bitcoin’s Market Can Handle It
In 2024 alone, $379 billion of new capital flowed into Bitcoin. A $6.5 billion sell-off is a small fraction of that and could be absorbed by the market within days.
2) The Market Has Already Priced It In
After the news broke, Bitcoin dropped by $700, stabilizing shortly after. This suggests big players may have anticipated this move, with the earlier drop from $102K to $95K already factoring in the fear, uncertainty, and doubt (FUD).
3) Sales Likely via OTC
Unlike the German government, which sold Bitcoin on public exchanges, the US government is expected to sell its BTC over-the-counter (OTC). This method minimizes market impact, reducing the chances of a significant price drop.
The Bottom Line
The impact of this sale is likely being overstated. As always, retail investors may panic sell now, only to buy back at higher prices in the coming months. Stay calm and avoid making impulsive decisions based on
short-term news.