Fed Sale
Fed sale is a term used in the cryptocurrency market to describe when central banks sell their holdings of digital assets. This activity can be seen as an indication that governments are taking steps towards mainstreaming and regulating cryptocurrencies, which could potentially lead to more widespread adoption and use by investors. It may also signal that government-backed institutions have faith in the long-term stability of crypto markets.
The most notable example of a Fed sale has been China’s State Administration for Market Regulation (SAMR) auctioning off $7 million worth of bitcoin seized from criminals earlier this year. The auctions attracted over 400 bidders with prices ranging between CNY 19,100 ($2,800 USD) to CNY 20,500 ($3,000 USD). The SAMR noted that the proceeds would go towards “maintaining social order and public security” as well as developing new technologies such as blockchain technology and artificial intelligence.
Other countries including France have also taken similar steps by selling confiscated BTC during police raids on suspected criminal organizations using Bitcoin for money laundering activities or other illegal activities. While these sales may appear small relative to global trading volumes they do send signals about how regulators view digital assets going forward and set precedents for future policy decisions regarding cryptos around the world .
