Government backs Bitcoin as a reserve asset after a massive crash — buy the dip
Bitcoin just suffered a massive crash to $65,000, wiping out billions of dollars from leveraged traders. However, the U.S. Treasury Secretary just announced that the government is moving forward with plans to create a strategic Bitcoin stockpile.
Idea
When an asset drops as fast as Bitcoin just did, traders who borrowed money to buy it are forced to sell automatically, creating a cascading crash that often overshoots to the downside. This panic selling usually flushes out all the weak hands right before a rebound. Adding to the setup, the U.S. government just confirmed it is actively working to build a national Bitcoin reserve, which is unprecedented institutional backing. If the world's largest economy starts buying Bitcoin as a strategic asset, it could trigger a massive recovery once this current wave of panic selling exhausts itself.