Joe Biden Will Dump U.S.’s $15B Bitcoin Holdings Before Elections. Read CoinChapter.com on Google News
NAIROBI (CoinChapter.com) – Joe Biden’s administration transferred $2 billion worth of Bitcoin just two days after former President Donald Trump pledged to create a “crypto capital of the world” if reelected.
According to blockchain analysis platform Arkham Intelligence, Bitcoin seized from the Silk Road dark web marketplace was moved to an unknown wallet on July 29.
Government’s Bitcoin transaction. Source: Arkham
Moreover, Arkham Intelligence reported the U.S. government split the $2 billion Bitcoin into two addresses: one holding 10,000 BTC and the other 19,800 BTC. This division has led to speculation about an over-the-counter (OTC) auction, a method often used by the government to sell seized assets without directly affecting market prices.
Joe Biden Administration Defies Trump’s Crypto Vision
The Biden administration’s recent transfer of Bitcoin has raised questions about its intentions. Trump also proposed firing SEC Chair Gary Gensler to implement more crypto-friendly policies.
Senator Cynthia Lummis introduced legislation to hold Bitcoin as a Treasury asset, likening it to a “21st-century Louisiana Purchase.” The Wyoming senator suggested that holding 5% of Bitcoin’s supply would strategically position the U.S. in the evolving digital economy.
Biden to Sell U.S. $15B Bitcoin Holdings Before Elections. Source: Peter Schiff
Economist and gold advocate Peter Schiff believes the Biden administration will sell every Bitcoin before Trump could take office again. Schiff argued that if Trump intended to create a strategic Bitcoin reserve, he would have kept his plan secret until taking office.
Now that the Biden administration is aware, they will likely sell all the Bitcoin before Trump could act.
Not A Good Idea For The Democrats
David Bailey, CEO of Bitcoin Magazine, suggests that Joe Biden might be trying to use the sale of Bitcoin to gain leverage.
Biden Plans to Sell Bitcoin. Source: David Bailey
Furthermore, the perspective aligns with high-profile prosecutions involving Ross Ulbricht and the Silk Road, implying that the $2 billion Bitcoin transfer could be an attempt to counterbalance Trump’s crypto initiatives.
In a parallel move, on July 13, Germany’s Saxony state completed the sale of 50,000 BTC seized from the movie piracy website movie2k, generating around $2.87 billion. The sale secured a profit of over $740 million compared to their acquisition cost of $2.13 billion in January.
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