Several reports have suggested that crypto wallets on the blockchain linked to the U.S. government have transferred nearly 30,000 Bitcoin, equating to more than $2 billion, within the past day.
This abrupt movement of crypto assets has sparked speculation that the Democrats may consider selling them to counter Donald Trump’s objectives. Trump has vowed to obstruct any attempts to sell the government’s Bitcoin holdings, viewing them as the foundation of a new “strategic national Bitcoin stockpile.”
United States Government transfers $2b worth bitcoin
In June, blockchain analysis company Arkham disclosed that the U.S. Government moved $2 billion worth of Bitcoin to a new address labeled “bc1q.” Subsequently, the company reported that this substantial amount was divided into two distinct addresses: 10,000 BTC now held in “bc1qlap8” and 19,800 BTC in “bc1qngy.”
Furthermore, Arkham analysts claim that the 10,000 BTC represents a transfer to an institutional custody or service, indicating potential preparations for a sale.
The timing of the BTC movement appears questionable, as it happened shortly after former U.S. President and current presidential candidate Donald Trump publicly stated at the Bitcoin 2024 conference on Saturday that he plans to prevent the U.S. government from selling its substantial BTC holdings. Before yesterday’s activity, the U.S. government held more than 213,000 BTC, representing about 1% of the total Bitcoin supply.
Reactions from the cryptocurrency community
As anticipated, this decision has sparked intense criticism and debate in the Bitcoin community. Many experts argue that the Harris Administration is gearing up to release substantial amounts of BTC to provoke Donald Trump, a vocal supporter of the crypto space. The majority of cryptocurrency users are also expressing their backing for the pro-crypto presidential candidate.
Moreover, this move followed reports of advisors for Vice President Kamala Harris, another Democratic presidential candidate, reaching out to prominent crypto companies to “reset” relationships. This outreach aimed to bridge the gap between the long-time crypto-sceptic Democratic party and the cryptocurrency sector.
David Bailey, CEO of Bitcoin Magazine and an advisor to the Trump campaign, was one of the first to condemn the movement of these American assets.
He pointed out that if the Democrats continue to “plunder” America’s bitcoin, it would be a substantial political mistake that could alienate a whole generation of voters.
Tyler Winklevoss, co-founder of the Gemini cryptocurrency exchange, also highlighted the broader implications for the Biden-Harris administration’s relationship with the crypto industry. Ironically, he suggested this could be a “great way” to “reset” the industry.
Further, there are discussions about Trump’s potential retaliatory actions, hinting at a political response that could resonate with Bitcoin advocates and voters.
According to the crypto analyst MacroScope, if the government sells BTC following Trump’s pledge, he could hit back by promising to instruct the Treasury to repurchase it to restock U.S. reserves.
Bitcoin price drops
The global crypto market experienced a 2.76% decline over the past day, with Bitcoin’s value dropping by 3.70%. Bitcoin was changing hands for $66,268 at press time after briefly reaching $70,000 yesterday, July 29th.
