Space Force Major Jason Lowery stated, “There is no price at which it is economically viable for the United States to dispose of any Bitcoin that it controls.”
Crypto industry executives and observers were prompt to underscore the absurdity of the United States government’s decision to transmit $1.9 billion of Bitcoin to Coinbase.
In 1933, President Franklin D. Roosevelt issued an executive order known as EO 6102, which prohibited the accumulation of gold coins, gold bullion, and gold certificates in the United States.
On December 2, the United States government transmitted approximately 19,800 Bitcoin, which were valued at $1.9 billion at the time, to a Coinbase Prime deposit address.
Brian Armstrong, the CEO of Coinbase, concurred with Lowery’s assertion that the United States government should refrain from selling its Bitcoin.
Toby Cunningham, a crypto educator, stated, “If they are foolish enough to sell (which we all know governments are foolish), then that supply will be consumed immediately.” Another observer added, “Biden will cause as much harm as possible before he departs office.”
This year, the US government has transferred a total of 25,999 BTC, which is approximately $2.49 billion, to Coinbase. Nevertheless, the analytics platform Spot On Chain suggests that these transfers may be considered custody actions rather than sales.
Gabor Gurbacs, the Tether strategy adviser, indicated that the United States government may be upgrading obsolete addresses or consolidating wallets.
“There is also a great deal that we do not yet understand. The likelihood of their sale is uncertain. So far, I have not encountered any official auction information,” he stated.
Julio Moreno, the head of research at CryptoQuant, stated that it was “highly probable” that only 10,000 BTC were sold in the most recent transactions. This is due to the fact that these BTC were sent to Coinbase Prime, while the remaining 9,800 BTC were transferred to a newly established address.
Spot on Chain indicates that the United States government maintains approximately 183,850 Bitcoin (BTC) valued at approximately $17.7 billion at a variety of known locations.
At the time of the transfer, the price of bitcoin experienced a significant decline, plummeting by nearly 3% to $94,500. At the time of this writing, the asset had recovered to approximately $96,000.
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