The U.S. government has moved $192 million worth of Bitcoin to a new wallet. Of this, $96.3 million was immediately moved to Coinbase. This asset comes from the Silk Road seizure, so the U.S. can legally sell it all.
Community members are concerned that President Biden is trying to sell off the U.S. Bitcoin supply before Trump's inauguration. This could interfere with Trump's plan to establish a Bitcoin reserve for the U.S.
U.S. Government Moves 20,000 Bitcoins
According to data from the on-chain intelligence platform Arkham, the U.S. government moved $192 million worth of Bitcoin to a new wallet on Monday, November 2. This asset was split into two new wallets, with one subsequently moving $96.3 million worth of Bitcoin to Coinbase.
This Bitcoin comes from the Silk Road seizure, and the U.S. government can legally sell it. This has raised concerns about potential large-scale dumping:
"Is the government planning to sell Bitcoin before Trump takes office? The outgoing administration should not interfere with the next president who was voted in by the people." – Carl B. Menger, Industry Commentator
Specifically, industry rumors suggest that President Joe Biden is deliberately trying to interfere with President-elect Donald Trump during the final months of his term. Trump had pledged to establish a U.S. Bitcoin reserve as a campaign promise, which would start with a significant government holding.
The U.S. is currently one of the countries with the largest Bitcoin holdings, thanks to ongoing crackdowns on illicit organizations and dark web criminal groups. These holdings could help Trump establish a national Bitcoin reserve when he takes office in January. This can be done without bringing significant additional funds into the economy.
However, despite Trump's electoral victory, crypto analysts have theorized. Biden may sell off much of the U.S. Bitcoin supply during his remaining term, which would hinder Trump's ability to establish the reserve. Worryingly, Biden has used this strategy in other policy areas as well, providing billions to Ukraine to prevent Trump from changing U.S. policy.
Nevertheless, the crypto community does not seem overly concerned. Four months ago, the U.S. government was preparing to sell $600 million worth of Bitcoin. The market dipped, but BTC recovered and has been on an upward trend due to increased institutional investment.
Similarly, after this latest movement was first disclosed, the price of Bitcoin dipped slightly. However, its value soon began to rise again. Therefore, long-term holders remain confident in Bitcoin's upward trajectory, despite the rumors of sales. This is evident in the actions of public companies like MicroStrategy and MARA, who continue to purchase more Bitcoin.
Despite these events, Trump is likely to establish a reserve using the federally held Bitcoin. Additionally, it would be very difficult for Biden to sell off all the Bitcoin by January. Furthermore, several corporate whales are ready to directly purchase these assets.
