# Government backing Bitcoin after a $1.8B wipeout — buy the crypto dip

_AI-generated trading idea · LONG · BTC_

> Canonical page: https://commonquant.ai/research/for-you/government-backing-bitcoin-after-a-1-8b-wipeout-buy-the-cryp--cc624f9e-1ce8-4b60-ab7d-b48ea30a8d5f

Bitcoin just crashed to $65,000, forcing over $1.8 billion in forced liquidations. However, the U.S. Treasury Secretary just announced they are moving forward with plans to create a strategic government Bitcoin reserve.

## Idea

A massive $1.8 billion liquidation event suggests a lot of panic selling has already happened, which often clears the way for a bounce. Adding to this, the U.S. government just signaled it is moving forward with a strategic Bitcoin reserve. When the world's largest economy starts treating an asset like digital gold, it provides a massive psychological and financial backstop for the price. Buying while others are forced to sell, but with the government as a future buyer, offers a strong risk-reward setup.

## Key details

- Symbols: BTC
- Timeframes: H4
- Tags: \#crypto, \#government\_policy, \#mean\_reversion

## Community

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## News sources

- [Bitcoin's crash to $65K triggers $1.8B in crypto liquidations](https://cointelegraph.com/markets/bitcoins-crash-to-65k-triggers-18b-in-crypto-liquidations) — Cointelegraph
- [US Treasury Secretary signals progress on Bitcoin reserve, CLARITY Act](https://cointelegraph.com/news/us-treasury-secretary-clarity-act-bitcoin-reserve) — Cointelegraph

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