Will BTC Plummet? UK Home Office Aims to Sell Off $7 Billion in BTC to Enhance Public Finances
Is a Bitcoin crash on the horizon? The answer is YES, if the U.K. gets its wish. British authorities are gearing up to offload a crypto treasure of more than 61,000 BTC ▲0.40% linked to a collapsed Chinese Ponzi operation onto the market.
The U.K. just can’t seem to catch a break, can it?
This marks the largest crypto confiscation ever sold by a Western nation, coinciding with Chancellor Rachel Reeves searching for solutions to address a growing budget deficit for 2025. However, this decision is already attracting criticism, as investors pose the question of whether Britain is once more trading its future for immediate fixes.
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Is Bitcoin Set To Crash? A Financial Crisis Meets The U.K.’s Crypto Assets
With Britain looking at a potential deficit of up to £20 billion, the Treasury is considering that liquidating its collection of digital currencies, linked to a multi-billion-dollar Chinese scam, could bring in over £5 billion at current valuations.
The specter of Gordon Brown’s notorious gold price drop looms in the background. In the early 2000s, Brown offloaded nearly half of the U.K.’s gold reserves at a generational low of only $275/oz. Presently, that gold is valued at more than $3,300/oz, solidifying the choice as one of the most poorly timed sell-offs in recent financial history.
This is extremely detrimental and much worse than Gordon Brown’s liquidation of our gold!
The UK should be enhancing its crypto holdings rather than selling them.
We are in desperate need of another Margaret Thatcher! pic.twitter.com/7TyihTkwOa— Ed Sabella (@Ed_Sabella) July 20, 2025
At this point, skeptics are questioning if Bitcoin — which has surged by over 1,000% in the past five years — is about to make the U.K. regret its decision.
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Regulatory Trends and U.S. Partnership
Chancellor Reeves has openly advocated for tighter collaboration with U.S. regulators to foster more uniform global crypto regulations. This makes the forthcoming BTC liquidation from the U.K. even more perplexing, and it could serve as a case study on how governments address the seizure of digital assets.
Currently, Britain seems satisfied to take a backseat in the digital asset race, allowing U.S. regulators to set the groundwork for the rules of engagement.
Will the Sale Disturb Bitcoin Markets?
With Bitcoin hovered around $117K, the prospect of 61,000 coins entering the trading market has traders on high alert. While a complete sell-off isn’t anticipated, even a gradual release of that magnitude can shift trading market sentiment rapidly.
Price swings is once again on the menu, and, in some instances, perhaps for ‘gals as well? How the U.K. manages this sale — legally, economically, and operationally — will influence global standards for public asset recovery in the era of digital currency.
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Key Takeaways
- Is BTC set to crash? The answer is YES, if the U.K. gets to decide. British authorities are on the verge of liquidating a crypto treasure consisting of over 61,000 BTC.
- A full-on dump is not anticipated, but even a gradual release on that scale can swiftly alter crypto market sentiment.
The post Is BTC Set to Crash? U.K. Home Office Aims to Liquidate $7 Billion in BTC to Enhance Public Finances appeared first on 99Bitcoins.