Bitrabo Editorial
The US Democratic government recently orchestrated the transfer of 29,800 Bitcoin, valued at around $2 billion, to a new address, according to a report by the crypto intelligence platform Arkham. This move surprised the market and sparked speculation in the industry.
Arkham’s report revealed that the Bitcoin was split into two addresses: 10,000 BTC in bc1qlap8 and 19,800 BTC in bc1qngy. Analysts believe the 10,000 BTC may represent a deposit into an institutional custody or service, hinting at a potential sale.
These transfers followed Donald Trump’s announcement at the Bitcoin 2024 conference of his plans to prevent the US government from selling its significant BTC holdings. Before this recent move, the US government held over 213,000 BTC.
Despite Trump’s intentions to create a “national Bitcoin stockpile,” the Democrats, especially Vice President Kamala Harris’s advisors, have engaged with crypto companies to improve relationships. However, the recent Bitcoin sale by the US government indicates a possible strategy shift to thwart Trump’s plans. The US government still retains 183,439 BTC worth approximately $12.6 billion.
Bitcoin Industry Reactions
David Bailey criticized the Democrats’ move to sell Bitcoin, expressing concerns over potential voter backlash. Eric Weiss highlighted the political risks involved, suggesting it could cost the administration votes. Mike Novogratz criticized the timing of the decision, branding it as insensitive.
Tyler Winklevoss emphasized the strained relationship between the Biden-Harris administration and the crypto industry due to the Bitcoin sale. Additionally, a crypto analyst speculated on potential retaliatory measures from Trump, while Peter Schiff critiqued Trump’s original plan related to Bitcoin reserves.
Bitcoin was trading at $66,656 at the time of writing.
