UK To Follow Germany's Bitcoin Dump Move? More BTC Dip Ahead?

Highlights

Recent rumors sparked speculations over the UK to follow the German government's move to offload its BTC holdings.
Rachael Reeves might consider dumping BTC to back her economic agenda.
The rumors fueled discussions over another dip in Bitcoin price ahead.
Despite the rumors, Bitcoin has regained the $65,000 mark today.

The crypto market buzzes with speculation as the UK might follow Germany’s recent Bitcoin sell-off move. Rachael Reeves, the new Chancellor of the Exchequer, is under pressure to fund her economic plans. Now, with the Britain government holding a substantial BTC stash, rumors suggest a possible market dip if Reeves decides to sell.

The rumors have also fueled discussions over another possible dip in the flagship crypto’s price in the coming days if the situation holds true.

UK Planning For Bitcoin Selloff?

Rachael Reeves, a former Bank of England economist, faces tough economic conditions as the new Chancellor. Bloomberg reports that Reeves could sell the UK’s seized Bitcoin assets, valued at around £3.9 billion or $5 billion, to support her economic agenda. Notably, this move echoes the recent BTC dump by the German government, which significantly impacted the cryptocurrency market.

Meanwhile, the Britain govt. acquired these BTC holdings through legal actions, including a major case against money launderer Jian Wen. The Crown Prosecution Service secured Wen’s assets, including BTC, valued at around £2 billion at the time.

With the current value at £3.9 billion, Reeves has a substantial resource at her disposal. However, selling these assets could lead to a significant dip in BTC price, similar to what happened after Germany’s recent move.

For context, the German government sold nearly 50,000 BTC, contributing to a 15% price drop. Reeves must consider this precedent while deciding whether to liquidate the Bitcoin stash. Bloomberg suggests that Reeves might avoid Gordon Brown’s infamous gold sale mistake, which saw Britain sell gold at low prices before a market surge.

Also Read: Institutions Bet Big On $100,000 Bitcoin Call Options

Possible Impact On The Market

Selling Bitcoin could provide quick funds for Reeves’ economic plans, according to Bloomberg. However, the move might lead to market volatility. BTC price could dip further, affecting investors and the broader crypto market.

Having said that, Reeves might consider balancing the immediate financial gain against the potential long-term market consequences. The report suggests that a more strategic approach might involve relaxing crypto regulations to offset potential market impacts.

Bytecoin’s Charlie Morris notes the UK’s current anti-crypto stance. Easing regulations could attract investment and demonstrate the new government’s support for technology and innovation. Such a move might mitigate the negative effects of a BTC selloff.

Reeves’ decision will be closely watched by market analysts and crypto enthusiasts. With international criminals increasingly using BTC, more crypto assets might come under government control. This ongoing influx could provide a recurring source of funds, but the market response will depend on how Reeves manages these assets.

As of writing, Bitcoin price has recovered from its recent dip and traded above the $65,300 mark. Over the last 24 hours, BTC has dropped to $63,246, indicating the heightened volatile scenario in the market. Moreover, its trading volume also rose 11% to $30.11 billion during writing.

Also Read: Why Is XRP Price Down Today?

TAGS
Bitcoin (BTC) Price

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.