On Sunday, the UK bitcoin price surpassed £52,000, reaching the peak of its long-term bull flag. Is £btc preparing for a major price surge? When will the leading cryptocurrency make the jump?
Three weeks can bring significant changes. At the beginning of July, bitcoin was hovering around £41,500 and many investors might have considered selling, with some likely moving on. Now, bitcoin is at the top of its bull flag, suggesting that a major bullish move could be imminent.
Following the recent bitcoin sell-off in Germany, the cryptocurrency market is speculating on whether the UK could take similar steps. Recently, a new Chancellor of the Exchequer, Rachael Reeves, faced pressure to fund her economic plans. Therefore, concerns arose over the potential impact of selling the UK’s significant btc holdings. If Reeves chooses to sell, rumors suggest it could trigger a bitcoin price crash in the UK.
crypto intelligence platform Arkham reports that the UK government held approximately 61,245 Bitcoins as of July 19. The value equates to almost £4 billion. However, the sale of these assets could lead to a significant drop in the price of bitcoin, similar to the impact of the recent large-scale bitcoin sell-off in Germany. The sale of almost 50,000 btc by the German government caused a 15% drop in price. So will the UK follow Germany’s example?
UK bitcoin Holdings: Reeves' Strategy
It is no secret to the public that Rachael Reeves is a politician who owns a portion of the UK’s bitcoin holdings. BitcoinTreasuries.net reports that governments currently hold approximately $31 billion worth of bitcoin, of which a significant portion belongs to the UK.
Earlier this year, the Crown Prosecution Service convicted Jian Wen, a former takeaway restaurant employee turned international money launderer. It also obtained an asset freezing order against her assets, including bitcoins valued at around £2bn at the time.
According to figures from crypto intelligence firm Arkham, cited by RSM UK's accountants, the UK now holds 61,245 bitcoins, most of which previously belonged to Wen and are now valued at around £3.9 billion ($5 billion). The UK must complete a civil recovery process to confirm that Wen's assets were obtained illegally and should be seized in favour of the state, RSM notes.
Typically, the proceeds of crime are split between the police and the Home Office. However, the scale of this asset theft suggests Reeves will likely have the final say.
As Reeves considers using the billions of bitcoins, he will likely recall the decision by his predecessor, Gordon Brown, to sell off the UK’s gold reserves. Between 1999 and 2002, Brown sold 401 tonnes of gold at an average price of £213 an ounce. At the time, this decision probably seemed reasonable, given that other central banks were also selling their gold.
However, with the rise of fiat currencies and the dotcom boom, gold lost importance. Its price continued to fall and central bankers' confidence in gold as a diversifier waned. In 1999, the New York Times even questioned the need for gold in the presence of figures such as Alan Greenspan. Brown's shares generated approximately £2.71 billion.
Selling the Gold Legacy: Reeves' Future Strategy
In retrospect, the decision to sell off the UK's gold reserves proved disastrous. It has become one of the most regrettable transactions in the history of the market. From the early 1980s until the UK began selling its gold in July 1999, gold prices had fallen by 60%.
However, these sales coincided with the end of a two-decade bear market for gold, which then rose 20% over the next three years. This week, gold set a new record, surpassing £1,921 per ounce. Central banks have significantly increased their gold purchases as they rebuild reserves. As a result, Brown is remembered for having sold gold at its lowest point.
The Labour chancellor should consider selling Britain’s confiscated cryptocurrency assets to support her economic plans. Rachel Reeves needs funds as the new chancellor of the Exchequer as she inherits what she describes as one of the most difficult situations since World War II. Achieving her goal of “rebuilding Britain and improving every region” will be costly. Fortunately, Britain’s bitcoin holdings offer a ready source of funds without the need for tax increases.
Reeves should seize this opportunity, despite the risk of leaving a less favourable legacy compared to her predecessor, Gordon Brown. The situation is different to Brown’s with gold: bitcoin is not yet a well-established currency or asset class and is unlikely to become part of the Bank of England’s reserves. The chancellor and the Treasury should avoid speculating on the future value of bitcoin Price UK. In a similar way to how they would not create an Airbnb for confiscated Mayfair mansions or use a watch lending service for confiscated Rolexes.
Strategic considerations for sale and regulatory implications
Reeves should proceed to sell the bitcoins and use the proceeds for immediate improvements, aiming to take a more strategic approach than Gordon Brown. Brown's approach led to selling at a very low price due to poor execution.
Furthermore, Reeves should also take into account Germany's recent actions: Arkham data, as RSM points out, reveals that the German government has sold nearly 50,000 bitcoins since mid-June, which could contribute to a 15% drop in the price of bitcoin ahead of Trump's trade period.
To avoid criticism from cryptocurrency enthusiasts who advocate holding onto bitcoin, Reeves could ease regulatory restrictions. Bytecoin’s Charlie Morris suggests that the UK’s current stance is “the most anti-crypto in the West.” By introducing a closed-end liquid fund for retail investors, Reeves could benefit the London Stock Exchange and signal greater support for technological progress from the new government.
Furthermore, Reeves may need to take into account that international criminals are still using bitcoin and law enforcement is still arresting them. More cryptocurrencies could therefore come into their possession. Gordon Brown did not have this advantage. Today, central bankers, rather than criminals, are the main holders of gold.
btc price in the UK rises due to Trump's influence
As Donald Trump looks ever closer to defeating Joe Biden in the US presidential election, investors are rushing to snap up assets that could benefit from a Trump presidency. These include US small businesses likely to benefit from protectionist measures, European defence companies anticipating larger military budgets, US energy companies and, in particular, bitcoin.
The Republican stance on cryptocurrencies appears more favorable than Biden's, despite the sector's strong performance during his administration. Their recent platform criticizes the cryptocurrency crackdown as “illegal and un-American.”
Trump’s new running mate JD Vance clearly supports cryptocurrencies, as evidenced by his latest financial disclosure, which shows around £77,500 worth of bitcoin holdings. As a result, bitcoin’s value has risen by more than 10% since Trump’s assassination attempt, benefiting its investors.
Bernstein analyst Gautam Chhugani found that the cryptocurrency market views a potential Trump victory as beneficial for cryptocurrencies. Currently, the price of bitcoin shows a strong connection with the likelihood of a Trump presidency.
Following Saturday's failed assassination attempt on Trump, the value of bitcoin has risen by 10% to almost £53,000. This incident has increased the chances of Trump winning the presidential election in November, according to betting markets, which offer a somewhat imperfect real-time indicator of voter shifts. Recent polls also indicate that Trump currently has a slight lead over Biden.
<img decoding="async" class="aligncenter wp-image-315007 size-full" style="aspect-ratio:1200/853" data-mob-src="https://www.financebrokerage.com/wp-content/w3-webp/uploads/2024/07/BTCGBP_2024-07-23_18-04-32-595xh.jpegw3.webp" data-class="LazyLoad" src="https://technicalterrence.com/wp-content/uploads/2024/07/Bitcoin-price-in-UK-could-skyrocket-if-Britain-sells-its.webp.webp" alt="bitcoin Price in UK on July 23″ width=”1200″ height=”853″/>
btc/GBP 5-day chart
Where are we now? Live bitcoin price in the UK
Over the past 24 hours, bitcoin has seen a modest 0.59% drop against the British Pound. Despite this recent drop, the cryptocurrency has shown a solid performance over the past week, rising by 11.61%. bitcoin’s value has also increased by 3.24% over the past month and has shown a remarkable growth of 66.75% over the past six months.
So far this year, bitcoin has appreciated by 57.22%, and its annual return is particularly impressive at 125.76%. Over the past five years, bitcoin has increased by 559.89%, highlighting its significant long-term expansion. Since its inception, the value of bitcoin has skyrocketed by an extraordinary 32,840%.
Currently, the trading volume stands at 64.07 btc. The price of bitcoin in the UK today stood at £52,676.56. The opening price was £52,676.03 and the trading range today fluctuated between £51,771.63 and £52,858.19.
For future projections, market analysts will be keeping a close eye on Reeves’ next moves. crypto enthusiasts predict that by the end of summer 2024, the price of bitcoin could reach approximately $74,703.77. In August 2024, bitcoin could experience a dip, potentially falling to a low of $66,861.59. Conversely, the price could rise to a high of $82,545.95 during the same month.
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