UK Plan Make Sale of Seized Bitcoin to Cover Budget Deficit
UK government dey plan to sell Bitcoin wey dem seize worth over $2.5 billion by mid-2024 to help cover im budget shortfall wey dey grow. Na National Crime Agency dey manage dis crypto asset wey dem take during investigation of money laundering and fraud. Dem go channel the money to HM Treasury.
Dem go do the Bitcoin sale in phases through auction and over-the-counter deals to reduce market wahala. Officials talk say dem dey use US Department of Justice Bitcoin auctions as benchmark. Before, dem try find company to manage sales but nobody gree bid.
Traders suppose dey watch for increase for sell-side pressure on BTC price and follow the staggered release plan well. More cooperation between UK and US regulators fit help stabilize the market. Dis kind big seized Bitcoin sale show say government dey use crypto asset wella for managing money matter and e fit set better example for the world.
Bearish
Di plan wey dem get to sell seized BTC go increase di sell-side supply for di spot market. For short term, dis added supply fit make BTC price dey go down, wey go make di outlook bearish. But government phased auction and OTC deals fit help reduce sharp market wahala. For long run, dis kine way to turn seized asset to fiscal revenue fit encourage oda places to do same tins, which go still put pressure to make market sentiment bearish.