So what happens if the US govt sells all its bitcoin at once? Does bitcoin price plummet? Could this be used to ruin small folks who switch all their savings from fiat to BTC in a very fiat mindset of grow-and-sell?
Other questions: Who manages the US govt's wallet? Is it custodial? Who would buy the bitcoin?
I tried an internet search but all I got was 2018 era "what if Satoshi sells all his btc?"
Short term they could dump the dollar exchange rate, but there are a few things to consider
1. Long term it doesn’t matter, and people who buy their coins will get Bitcoin at a discount
2. They would take a huge loss on their Bitcoin themselves, since there would be tons of market slippage. If they sold in a controlled, OTC manner, they would get more dollars for their Bitcoin.
3. The government is typically not supposed to manipulate markets, at least not that transparently. Fidelity and Blackrock would probably be giving them a phone call.
4. They said they would sell them all last year, and only sold 9,000 (if I remember correct). Why would they give up Bitcoin for shit money that they can print themselves? It would be a huge mistake which I don’t anticipate them making.
Wouldn't that just be a dip for all the HODLers?
