The U.S. Government has transferred $2 billion in Bitcoin to two separate addresses, according to a report by Arkham. The transfer involved 10,000 BTC ($669.35M) sent to address bc1qlap8hkt9genaljz5nt2zlehhudx63zlahr2zek and 19,800 BTC ($1.33B) sent to address bc1qngydl7hmgdtmuqjmtsyj3pcwszv0yn5mj6kz4c.
This move has led to a 3.68% drop in Bitcoin’s value, which fell below $67,000 and is now trading at $66,948.87. The transfer has fueled speculation about the current administration’s plans for the nation’s Bitcoin reserves, especially in light of recent comments from former President Donald Trump.
Is the Biden Administration trying to Sell Off the Bitcoin Holdings?
Many have questioned whether the current Democratic administration, which is helmed by Vice President Kamala Harris and President Joe Biden, intends to sell up the country’s Bitcoin holdings in light of the transactions. These rumours haven’t been put to rest by the lack of comprehensive information regarding the wallet’s administration.
Gemini co-founder Tyler Winklevoss pointed out that the transfers happened just after former President Donald Trump declared he would stop selling Bitcoin to the government if he were re-elected.
At the Bitcoin 2024 conference in Nashville, Trump promised to convert the seized Silk Road Bitcoin into a strategic national reserve. This promise stands in contrast to the current administration’s actions, as the U.S. government has not conveyed any intentions to sell the moved Bitcoin.
Some provide a different viewpoint, such as cryptocurrency influencer Marty Party. “The U.S. Marshal Service is sending Bitcoin to Coinbase for custodianship, not to sell,” Marty Party stated.
He emphasised that the United States government selected Coinbase to hold Bitcoins that had been seized. Others who think that the move to Coinbase might be for safekeeping rather than an impending sale also hold this opinion.
Community Not So Happy with the Biden Administration
The U.S. government’s recent push for Bitcoin has led some cryptocurrency fans to worry that the Biden administration may sell up their holdings. The administration’s commitment to holding onto Bitcoin reserves has been questioned by some who have branded it as anti-crypto.
“Harris-Biden administration, under the direction of Secretary Yellen and Senator Warren, continues with business as usual, hoping the public remains unaware,” said Senator Cynthia Lummis.
The conjecture has increased due to the transfers’ timing, which came soon after Trump’s remarks. The discussion around the present administration’s cryptocurrency policy has heated up in response to Trump’s vow to keep the seized Bitcoins as US reserves if he wins reelection. Many in the cryptocurrency world are keeping a careful eye on this, worried about how it might affect the market.
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