Key Points
- The US government recently moved 29,000 BTC worth $2 billion, causing a 4% drop in Bitcoin’s price.
- Bitcoin critic Peter Schiff warns the US government could sell its entire Bitcoin holdings before the Presidential Elections.
On July 29, the US government moved 29,000 Bitcoin (BTC), equivalent to $2 billion, that had been seized from the Silk Road marketplace. This action has caused ripples in the wider cryptocurrency market, leading to a 4% decrease in the price of Bitcoin over the past day. Peter Schiff, a critic of Bitcoin, has cautioned that the US government might liquidate its entire Bitcoin holdings prior to the upcoming Presidential Elections.
According to Arkham Intelligence, the US government possesses approximately 203,239 Bitcoin (BTC) valued at less than $14 billion. Interestingly, this sale happened just two days after former President Donald Trump expressed that he would consider holding Bitcoin as a strategic reserve for the US and would not sell the current holdings.
Contrasting Crypto Stances
However, the Biden administration appears to be taking a different approach, openly expressing their anti-crypto stance. In response to this, Peter Schiff commented that if Trump had truly planned to use the seized Bitcoin as a strategic US reserve, he would have kept his intentions secret until he was in office. Schiff suggested that now the Biden administration is aware of this plan, they will likely sell all Bitcoin holdings before Trump could potentially take office again.
Many veterans of the cryptocurrency market have criticized the Biden administration following the recent Bitcoin transfers. Tyler Winklevoss, co-founder of Gemini, argued that such actions send the wrong signals to the crypto industry and do not demonstrate a willingness to collaborate. He added that the crypto industry will not be influenced by such tactics, especially considering the administration’s anti-crypto stance over the past four years.
Demands for Crypto Industry Reset
On the previous day, Cameron Winklevoss stated that Vice President Kamala Harris will be initiating a “reset” with the crypto industry. However, he warned others to be wary of the “Big Bluff”. Cameron suggested that Harris should follow through on her promises and that the crypto industry will not fall for any further bluffs. He urged that Harris’ first action should be to remove SEC Chair Gary Gensler.
