Why does the market keep panicking and dipping hard every time there’s a rumor of the U.S. Gov selling Bitcoin?

Power of Sentiments

What happened sometime yesterday shows how powerful our sentiments are and how those sentiments affect the crypto market either for good or bad like yesterday when the crypto market crashed hard due to negative sentiment which led to the wrong reaction and panic selling. There was a rumor going around yesterday that the united states government was going to sell their Bitcoin held or seized, and a lot of people panicked and sold off their Bitcoin when we all already know how crypto is been hated and FUDed by the government, government bodies, mainstream media, and crypto haters.

Also, on the other hand, governments are untrustworthy, controlling, and very manipulative which is why most of the people in the crypto spaces are here and why crypto enthusiasts got into crypto for that exact reason. The panic selling yesterday and negative reactions were unnecessary because It is public already information or knowledge that the united states government is going to sell their remaining 40k Bitcoin over four (4) installments this year.

Now, my second question in this post is this, If we are getting these movements and panic selling over false alarms and FUDs, what happens during the real thing or when they actually sell the Bitcoins? Yesterday Consumer Price Index (CPI) news dropped and the market reacted positively to it and the crypto market moved upward or pumped due to the CPI data. This makes me still believe that the FUD yesterday was used by the crypto market manipulators to dump the price when the market became bullish.

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coininstant 2 years ago

It's a good catalyst, better to go with the flow than swim against the tide. BTC has always been like this so it would be crazy to expect otherwise. Any time you hear the gov selling btc, sell!

0.00 VYB

onwugbenuvictor 2 years ago

Noted! But I would be buying tho using DCA strategy.

Yup, that's why you sell the rumor & buy the news when shorting. Sure if you have a long time horizon you want to be buying the dips, but always wait for it as long as you can before buying.