Ross Gerber, a former Treasury official, has pointed out that the $1 billion worth of Bitcoin the US government sold may have been the main reason for the recent dip in the asset’s price. While Bitcoin has since regained a few percentage points—climbing roughly 2 % to just over $61 k—market sentiment remains in a state of extreme fear, according to the latest fear‑greed index.
For everyday crypto holders, this highlights how large institutional actions can ripple through the market. Even though the price has recovered, the underlying volatility suggests that a single large sale can still unsettle the market for a while. Retail investors should therefore keep an eye on any new Treasury disclosures or regulatory announcements that could influence the supply side of Bitcoin.
In the meantime, the crypto market is in a cautious phase. With the fear‑greed metric at the lowest end of the spectrum, any forthcoming economic data—such as a CPI print—or shifts in policy could quickly move sentiment. Watching how the Treasury’s next moves unfold will be key to understanding whether Bitcoin’s recent pullback is a temporary blip or a sign of deeper structural changes.