Selling the Bottom Again? UK’s £5B Bitcoin Plan Sparks Alarm! AllinCrypto July 20, 2025
The UK is on track to sell off 61,000 Bitcoin. Will this be a feat of brilliance or a repeat of an expensive mistake?
The government aims to raise around £5 billion worth of Bitcoin to fill budget gaps that are otherwise difficult to resolve. Leading this push is Rachel Reeves, the newly appointed Chancellor of the Exchequer effectively the UK’s counterpart to a Finance Minister on the continent.
According to The Telegraph, the plan is already well developed. The Home Office is working with law enforcement to liquidate a substantial Bitcoin stash 61,000 coins to be exact seized during various criminal investigations where victim asset recovery was not possible.
With the UK facing a £20 billion funding shortfall ahead of the autumn budget, the pressure is mounting.
The Bitcoin Question?
A Significant Liquidation Plan
This proposed sale would be one of the largest ever undertaken by a Western government. As reported by The Telegraph, the 61,000 coins were accumulated over several years through seizures in cases where rightful ownership couldn’t be confirmed.
A legal and operational framework is currently being developed to facilitate the sale. While the UK has previously sold smaller amounts of Bitcoin, this event would dwarf those past efforts.
When Will It Happen?
Timing vs. Market Reaction
Timing is everything and remains uncertain. It’s possible that The Telegraph’s report is more of an intention than a confirmed plan.
As noted, the UK urgently needs to raise around £20 billion. But offloading such a large quantity of Bitcoin could have a major impact on market prices. Moving too fast risks dragging down the value potentially raising far less than expected, or even less than the government might have gained just six months ago.
A Curious Comparison: Will the UK Gold Blunder Be Repeated?
Brown’s Bottom, All Over Again?
This story may remind some of the infamous UK gold sell-off between 1999 and 2002. During that period, the government sold around 400 tonnes of gold 58% of its reserves—at near-historic lows, around $275 per ounce (a price that now seems unthinkably low).
That fire sale, executed over 17 poorly timed auctions, became a financial cautionary tale. The timing by then-Chancellor Gordon Brown was so poor that it’s still remembered in financial circles as “Brown’s Bottom.”
Timeline of the UK Gold Sale
The red-highlighted window marks the period when the UK sold off its gold reserves.
That episode is still cited as a textbook case of mismanaged reserves rushed, with no time to restructure or diversify holdings. It stands as a warning to policymakers everywhere.
Will History Repeat Itself?
To err is human—but to make the same mistake with a different asset class could carry serious consequences.
Let’s not forget: Germany did something similar in 2024, selling off Bitcoin when it was worth less than half of its current value.
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