This is why the US government is moving $1.92 billion in Bitcoin

The US government moved $1.92 billion of Bitcoin to a new wallet, $963 million immediately went to Coinbase. These assets came from the Silk Road raids, so America could legally sell them all.

Community members are concerned that President Biden is trying to sell off the U.S. supply before Trump's inauguration, hindering his plans to create a bitcoin reserve.

US Bitcoin Reserve

According to the data of the on-chain intelligence platform Arkham, the US government moved $1.92 billion from new wallets to new wallets on Monday, November 2. These assets were divided into two new wallets, one of which subsequently moved $963 million in BTC to Coinbase.

These bitcoins came from the Silk Road seizure, which could be legally sold by the US government, leading to widespread fear of dumping.

“Is the government planning to sell Bitcoin before Trump takes office? The outgoing administration should not upset the incoming president as the people have already elected him,” said industry analyst Carl B. Menger.

In particular, industry rumors fear that President Joe Biden is using his lame-duck season to deliberately undermine President-elect Donald Trump. According to a campaign promise, Trump vowed to create a US bitcoin reserve starting with the federal government's largest holdings.

The US is currently one of the largest holders of BTC due to ongoing crackdowns on illegal entities and dark web criminals. These holdings could help Trump establish a national bitcoin reserve without taking significantly more money from the economy when he takes office in January.

However, even if Trump wins the election, crypto analysts have theorized that he could sell off most of the US bitcoin supply for the remainder of his term. This will hinder the creation of Trump's reserve. Worryingly, Biden has used this strategy in other policy areas, giving billions to Ukraine to prevent Trump from changing US policy.

However, the crypto community doesn't seem overly concerned. Four months ago, the US government prepared to sell $600 million in bitcoins and the market crashed. However, BTC rebounded following an increase in institutional funding and entered a new high.

Likewise, since these transfers were first made public, the price of Bitcoin has fallen slightly. However, the price started to increase after a while. Therefore, long-term HODLers are still convinced by Bitcoin's bullish prospects despite the liquidation rumors. This can be seen in the actions of public organizations as MicroStrategy and Mara continue to buy more BTC.

Regardless of these events, Trump is likely to create a reserve that will keep any bitcoin under federal custody. Also, it will be extremely difficult for Biden to sell them all in January. Additionally, a number of corporate whales are lining up to buy these assets themselves.