The US government transferred $1.92 billion in Bitcoin to new wallets, of which $963 million was immediately transferred to Coinbase. These assets stem from the Silk Road seizure, allowing the US government to legally sell them.
Community members are concerned that President Biden is trying to sell off America’s Bitcoin resources before Trump takes office, making it difficult for Trump’s plan to create Bitcoin reserves.
US Bitcoin Reserve
According to data From blockchain intelligence platform Arkham, the US government transferred $1.92 billion worth of Bitcoin into new wallets on Monday, November 2. These assets were divided into two new wallets, one of which was transfer 963 million USD BTC to Coinbase.
These bitcoins came from Silk Road seizures, which the US government could legally sell, leading to fears of a massive sell-off:
“Is the government planning to sell Bitcoin before Trump takes office? Outgoing administrations should not sabotage the newly elected President, when the people have voted to remove them,” said Carl B. Menger, an industry commentator. stated.
Specifically, industry rumors worry that President Joe Biden is using his remaining time to intentionally make things difficult for President-elect Donald Trump. As a campaign promise, Trump vowed to create a U.S. Bitcoin Reserve, starting with the federal government’s large holdings of the asset.
Currently, the US is one of the largest BTC Holders due to its continuous crackdown on illegal entities and criminal groups on the dark web. These assets could help Trump establish national Bitcoin reserves when he takes office in January without using significant additional funds from the economy.
However, even though Trump won the election, crypto analysts have theorized that Biden could use the remaining time in his power to sell off more parts of his Bitcoin supply. America. This would hinder Trump’s ability to create reserves. Worryingly, Biden has used this strategy in other policy areas, such as spending billions of dollars on Ukraine to prevent Trump from changing US policy.
The cryptocurrency community doesn’t seem too concerned, though. Four months ago, the US government was preparing to sell $600 million in Bitcoin and the market sank. However, BTC recovered and entered a bull market phase thanks to increased investment from institutions.
Additionally, since these movements became public, the price of Bitcoin has decreased slightly. However, its value started to increase again soon after. Therefore, long-term investors remain confident in Bitcoin’s bullish prospects despite liquidation rumors. This is evident in the actions of corporate companies, such as MicroStrategy and MARA that continue to buy more BTC.
Regardless of these events, Trump will likely create a Reserve with any remaining Bitcoin in federal ownership. Additionally, it will be very difficult for Biden to sell all that Bitcoin before January. Additionally, several large corporations are ready to take on these assets.
