The British government began to evaluate selling Bitcoin of $ 6.27 billion. These assets consist of BTCs confiscated on charges of money laundering. It is said that this sale can be made to close the country’s financial deficit. If sales occurs, it can create a major fluctuation in the market. So, how will this sales affect the price of Bitcoin?
England is preparing for the sale of Bitcoin
Blockchain Analysis Platform Arkham announced that England has a huge Bitcoin reserve. Most of these assets belong to Jian Wen, who was sentenced to money laundering. Authorities, Wen’in Bitcoins in cash and real estate, he says.
Government officials say they have met with experts to determine the best sales timing. Finance Minister Rachel Reeves thinks that this sales can alleviate political pressures. Germany had a huge profit from the sale of 50,000 BTC last year. England can take a similar step. However, how will the market react to this sale?
How will the sales affect the market?
Chris Etherington from the accounting giant RSM thinks that England should sell Bitcoin immediately. Due to the volatil structure of crypto currencies, a rapid sale can contribute to public finance. “This may be a way out for Reeves, or he says.
Lawyer Quentin Hunt says that the revenues from the sale will be transferred to the public safe. These funds will be managed by the UK Treasury. In other words, income from the sale of Bitcoin can be used to balance state expenditures. This may initiate a new debate on how states evaluate Bitcoin assets in the crypto market.
Is there a big decline in the Bitcoin market?
The sale of such a large Bitcoin may have serious effects on the market. Investors think that the price may fall if the UK sells BTC collectively. However, Germany’s BTC sales last year did not create a major collapse in the market.
If the UK is selling gradually, the effects on the price of Bitcoin may be limited. However, in a collective sale, the price of BTC may have a large fluctuation. This development may concern investors about how Bitcoin will be evaluated in the future. Investors should closely follow when the UK will take this decision. Could there be a critical turn for Bitcoin?
