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The U.S. government holds $5.6 billion worth of seized Bitcoin, What happens if they dump it?

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The U.S. government holds $5.6 billion worth of seized Bitcoin, What happens if they dump it?

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Honestly, when I saw this news a lot of thoughts came to my head, my first concern was not if they dump it as many who are on Twitter are reacting to the news, my first thought was how and why did the united states government seize something that according to the government and many others has no value, is imaginary or is a Ponzi scheme? Because if they believe Bitcoin and Crypto truly are worthless or have no value then there is no need to seize them in the first place or hold it afterward.

Now, let me talk about the questions most people were reacting to on Twitter, which is how long before the U.S. government dump the Bitcoin seized on us? and for some what happens when they finally dump the Bitcoin? because they are scared that if the government really wanted to crash crypto, they would just have to dump all that Bitcoin worth $5.6 billion on the market.

For the first question which is how long before they dump the Bitcoins seized, I have no answer to that and don't think anyone but the government has an answer to that question, for the second question which I have an answer to which is what happens when the government dumps the Bitcoin on us? My answer is nothing will really happen, as usual, the market will definitely react to it the first week or for a short-term period but it would never take Bitcoin out because $5.6 billion is just about 1% of Bitcoin's $540 billion market cap value so I do not know why some people are so scared of the dump because in my opinion the worst that can happen would be the market dipping for a week or 2 weeks or even less and the price would be back within 2 or 3 weeks.

I mean it took Bitcoin 3 days to recover from the dip caused by the Silicon Valley Bank collapse. Another thought that came to my head was that the U.S government instead of raising the debt ceiling, the government could pay off its entire $31.4 trillion Debt Balance with its Bitcoin seized when Bitcoin eventually hits $160k per Bitcoin, because at that point their Bitcoin value would be worth $32 trillion.

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