The United States government has transferred $1.92 billion worth of Bitcoin to new wallets. Of the total transferred, $963 million went straight to Coinbase. These assets came from the Silk Road seizure, so the US can legally sell them.
Community members are concerned that President Biden may be trying to sell off US supply before Trump takes office, thus undermining the Republican's plans to create a Bitcoin Reserve.
The US Bitcoin Reserve
According to data from on-chain intelligence platform Arkham, the US government transferred $1.92 billion worth of Bitcoin to new wallets yesterday, December 2. These assets were split into two new wallets, one of which later transferred $963 million worth of BTC to Coinbase.
Those bitcoins came from Silk Road seizures, which the U.S. government can legally sell, raising fears of a massive sell-off.
Is the government planning to sell Bitcoin before Trump takes office? Outgoing administrations are unlikely to hurt the president-elect since the people have already voted against them, industry commentator Carl B. Menger said.
Industry rumors fear that President Joe Biden is using his transition period to deliberately undermine President-elect Donald Trump. As a campaign promise, Trump promised to create a US Bitcoin Reserve, starting with the substantial holdings of the federal government.
US is one of the largest owners of Bitcoin
The US is currently one of the largest holders of BTC due to its ongoing crackdown on illegal entities and dark web criminal groups. These holdings could potentially help Trump establish a national Bitcoin reserve when he takes office in January without taking significant funds out of the economy.
However, even if Trump had won the election, crypto analysts have theorized that Biden could use his remaining time in office to sell off much of the U.S. Bitcoin supply. This would cripple Trump’s ability to build up a reserve. Worryingly, Biden has used this strategy in other policy areas, giving billions to Ukraine to prevent Trump from changing U.S. policy.
Will Biden's actions hurt Bitcoin?
However, the crypto community doesn’t seem overly concerned. Four months ago, the US government prepared to sell $600 million worth of Bitcoin, and markets plunged. However, BTC has since recovered and entered a bullish phase following the surge in institutional funding.
Likewise, since these transfers were made public, the price of Bitcoin has dropped a bit. However, its value began to rise soon after. Thus, long-term HODLers are still confident in Bitcoin's bullish prospects despite any sell-off rumors. This is evident in public company stocks, as MicroStrategy and MARA still continue to buy more BTC.
Bitcoin (BTC) Price Performance. Source: BeInCrypto
Regardless of these events, Trump will likely create a Reserve with whatever Bitcoin remains in federal custody. Furthermore, it will be extremely difficult for Biden to sell everything by January. There are, in particular, several large corporations, such as MicroStrategy, ready to buy these assets on their own.
The article US moves $1 billion in Bitcoin to Coinbase, threatening Trump’s plan appeared first on BeInCrypto Brasil.
