The U.S. and Germany just sold off almost 5k bitcoins

Bitcoin holders are concerned about national governments selling off large quantities of the cryptocurrency, as seen with the U.S. and Germany recently selling almost 5,000 Bitcoins. The U.S. government sold 3,940 Bitcoins seized from a narcotics trafficker, while Germany dumped 900 Bitcoins, sparking fears of further sell-offs. Such actions can impact Bitcoin prices due to supply and demand dynamics. While governments historically sold seized assets promptly, the case for holding onto Bitcoin as part of foreign reserves is gaining traction. Advocates suggest allocating a small portion (2-5%) of reserves to Bitcoin, similar to holding gold. Switzerland is debating allowing its central bank to hold Bitcoin, contrasting with the chairman's skepticism about its liquidity and sustainability. The move to include Bitcoin in foreign reserves reflects the evolving perception of cryptocurrencies as potential long-term assets alongside traditional currencies.