Bitcoin flash-crashes to $62K as government backs it as a reserve — buy the dip on the crypto panic
Bitcoin just suffered a massive crash, dropping below $62,000 and wiping out $1.5 billion from traders who had bet on prices going up. However, the U.S. Treasury Secretary just confirmed that the government is moving forward with plans to create a strategic Bitcoin stockpile.
Idea
Bitcoin has taken a huge dive, largely because traders were forced to sell their positions when the price started dropping, creating a panic. However, the U.S. government is actively working on a major executive order to establish a national Bitcoin reserve, which provides massive long-term credibility and demand. When an asset falls this fast due to forced selling, but has strong government backing in the background, it often bounces back quickly once the panic subsides.