The U.S. government transferred $1.92 billion in Bitcoin to a new wallet, with $963 million of that immediately transferred to Coinbase.
Community members are concerned that President Biden is trying to sell off the U.S. supply before Trump’s inauguration, hindering his plan to create his Bitcoin Reserve.
U.S. Bitcoin reserves
According to data from on-chain intelligence platform Arkham, the U.S. government transferred $1.92 billion worth of Bitcoin into a new wallet on Monday, November 2. These assets were divided into two new wallets, one of which then transferred $963 million in BTC to Coinbase.
These bitcoins come from illegal uses, which the U.S. government could legally sell, raising concerns about a large dump:
"Does the government plan to sell Bitcoin before Trump takes office? Outgoing administrations should not undermine the incoming president, as the people voted for them," Carl B. Menger, an industry commentator, said.
Specifically, industry rumors are concerned that President Joe Biden is using this phase to deliberately undermine incoming President Donald Trump. As a campaign promise, Trump vowed to create a U.S. Bitcoin Reserve, starting with significant BTC holdings from the federal government.
The United States is currently one of the largest holders of BTC due to its continuous crackdown on illegal entities and dark web crime groups. These holdings could potentially help Trump establish a national Bitcoin reserve when he takes office in January without needing to extract significant funds from the economy.
Worryingly, Mr. Biden has used this strategy in other policy areas, providing billions of dollars to Ukraine to prevent Mr. Trump from changing U.S. policy.
The cryptocurrency community does not seem too concerned. Four months ago, the U.S. government was preparing to sell $600 million in Bitcoin, and the market crashed. But BTC has recovered and entered a bull phase after increased buying from institutions.
Similarly, since these money transfer transactions were first announced, the price of Bitcoin has slightly decreased. However, its value began to rise shortly thereafter. Thus, long-term holders still have faith in Bitcoin's bullish prospects despite any liquidation rumors. This is clearly reflected in the actions of public companies, as MicroStrategy and MARA continue to buy more BTC.
Bitcoin (BTC) price performance. Source: BeInCrypto
