BREAKING: It is claimed that the UK plans to sell Bitcoin worth 5 Billion Dollars! Is this the reason for the plummet?

Question

According to a report by Telegraph, UK Finance Minister Rachel Reeves plans to sell confiscated Bitcoin assets worth £5 billion to cover the massive deficit in public finances.

The Ministry of Interior has begun working to establish an official system to sell this large cryptocurrency stock in collaboration with police forces.

The total value of the cryptocurrencies confiscated by the police is unknown, but in a raid conducted in 2018, 61,000 Bitcoins belonging to a China-based Ponzi scheme were seized. At that time, this asset was worth approximately 270 million pounds, and with Bitcoin reaching around 123,000 dollars last week, it is now worth more than 5.4 billion pounds.

The government plans to develop a "crypto custody and sales framework" to securely store and sell these digital assets. It is not yet clear how much of the revenue from sales will be transferred to the treasury, but money obtained from criminal proceeds is generally shared between the central government and law enforcement agencies. It is known that the treasury receives a larger share when victims cannot be identified.

Economists indicate that the government needs to find resources of up to 20 billion pounds in the autumn. As borrowing costs rise due to high inflation and interest rates, weak growth in the economy is putting pressure on revenues. It is reported that the Ministry of Finance is considering various revenue avenues, including tax increases.

Especially in the US, the positive steps taken by the Donald Trump administration towards cryptocurrencies and the adoption of the first national cryptocurrency law called the "Genius Act" have led to a significant increase in Bitcoin prices. These developments are expected to inspire similar strategies in the UK as well. In the US, the Trump administration aims to create a national reserve with the seized 3.4 billion dollars worth of Bitcoin.

In the UK, Reform UK leader Nigel Farage advocates for the creation of a national Bitcoin reserve. However, the Labour Party rejected this proposal due to the high volatility of cryptocurrencies.