It may be like this, although there are secondary sales, the sharp drop without a significant level has not been seen much, especially when the U.S. stock market is not synchronized.

This must be insider information! I was wondering why BTC plummeted, it turns out someone ran away early?
This news just broke, saying that the U.S. Department of Justice has obtained permission to sell the previously seized 6.5 billion dollars' worth of Bitcoin, and the recent decline has all occurred during U.S. trading days. I suspect some people on Wall Street got the news and dumped their holdings in advance.

Sigh, no matter how I analyze it, it's hard to find a direct reason for BTC's drop of ten thousand points because in a normal market decline, it wouldn't just fall without any rebound. It surprisingly turned out to be such a black swan event.

In this situation, we retail investors can only endure it. Apart from managing risk well, there’s no other way. Open high-leverage contracts with stop-losses, hold spot/2x positions steadily, and wait for Trump to take office. Who knows, there might be legislation that keeps this coin as a strategic reserve; he had promised that before.

Additionally, from obtaining permission to actual sale, it will likely take more than a year, so everyone should not scare themselves. There shouldn't be much impact currently; once the market's panic dissipates, the coin price will rise again.
Patience, at least until March when ETH upgrades, everything will get better.