Bitcoin crashes 8% following US govt 30k BTC sell news, Adam Back says it is good for Bitcoin

The Blockstream CEO explained why selling Bitcoin by the US government is going to become a better event for the Bitcoin market.

Bitcoin (BTC) as the best store of value helped many investors to make huge money. However, Bitcoin was made to maintain transparency in the financial activities of people & create a totally decentralized parallel central bank to fight against the monopoly of central banks but some bad actors use Bitcoin in illegal financial activities. Over the past several years, the US government did its job perfectly to collect Bitcoin from bad actors.
As per reports, the US government is holding nearly 200,000 BTC and all these funds were collected from the bad actors involved in cybercriminals and darknet markets.

On 2 April 2024, The US government deposited a small amount of Bitcoin to the Coinbase exchange, as a part of testing Bitcoin transaction.
As per the report, the government will sell nearly 30,000 BTC on the Coinbase exchange.

Blockstream CEO Adam Back shared his opinion on this move of the US government and said that it is going to create a better opportunity for the future of Bitcoin.

Adam said that Bitcoin sales might become beneficial to Bitcoin holders if the government sell and print more USD in the future.

In a jesting manner, he confessed that he would have held onto Bitcoin himself, suggesting that those who did would have profited from the government’s choice.

In brief, the Blockstream CEO attempted to explain technically that the US government would only receive fiat currency from selling this significant amount of Bitcoin. Additionally, this large sale could create significant volatility in the Bitcoin market but that will remain temporary. However, ultimately, they would print more fiat currency against the sale of Bitcoin, further contributing to inflationary pressures.

Read also: Goldman Sachs chief says Bitcoin is not an investment class asset