The U.S. government’s handling of its substantial Bitcoin holdings has come under scrutiny following recent statements by former President Donald Trump and speculations by economist Peter Schiff. Trump, speaking at the Bitcoin Conference 2024 in Nashville, Tennessee, pledged to maintain all seized Bitcoin as part of a “strategic reserve” if re-elected.
DOJ Transfers $2 Billion in Bitcoin
On Monday, the U.S. Department of Justice (DOJ) transferred approximately 29,799.99 BTC, valued at $2 billion, to an unknown Pay-to-Witness-Public-Key-Hash (P2WPKH) wallet. The movement of these funds has heightened speculation, with Schiff, a noted Bitcoin skeptic, asserting that the Biden administration intends to liquidate all its Bitcoin holdings before Trump could potentially take office. According to Arkham Intelligence, despite this transfer, the U.S. government still controls 183,439 BTC, worth over $12 billion.
“They’ll Sell Every Satoshi”: Schiff’s Prediction
Schiff voiced his predictions on social media platform X (formerly known as Twitter), suggesting that Trump’s public disclosure of his plans undermined any strategic advantage. He argued that Trump’s strategy would have been more effective if kept confidential until he was in office. According to Schiff, the Biden administration is now fully aware of Trump’s intentions and will act preemptively to counteract them.
Bitcoin Sale or Strategic Redistribution?
The government’s recent Bitcoin transactions have been met with various interpretations. While Schiff believes these actions signify an imminent selloff, others, such as Bloomberg analyst James Seyffart, propose alternative explanations. Seyffart speculates that the Bitcoin transfer might be connected to an agreement between the U.S. Marshals Service and cryptocurrency exchange Coinbase, suggesting that the move may not necessarily indicate a selloff.
Schiff Critiques “Never Sell Your Bitcoin” Stance
Further complicating the discourse, Schiff has also criticized Trump’s and Michael Saylor’s “never sell your Bitcoin” philosophy, questioning the practicality and rationale behind such a stance. He has previously argued that large-scale investment in Bitcoin could exacerbate national debt and inflation, offering minimal economic benefits. Schiff’s skepticism extends to the broader cryptocurrency landscape, challenging the notion of Bitcoin as a viable long-term asset.
Hong Kong Lawmaker Advocates Bitcoin for Financial Reserves: ReportBitcoin Price Remains Resilient Amid Speculation
Despite these controversies, Bitcoin’s market performance remains robust. Starting at approximately $69.73K, Bitcoin’s value steadily declined throughout the day, reaching a low of around $66.77K at press time, representing a 4.26% decrease.
