- The US government has moved some of the BTC from its portfolio to Coinbase Prime.
- Will this lead to another government-induced wave of selling pressure?
Is the US Government Starting to Sell Its Bitcoin? [BTC] possessions? Recent data suggests this could be an opportunity that could lead to another huge wave of selling pressure.
US presidential candidate Donald Trump’s support for Bitcoin may have built some trust regarding the US government’s BTC holdings.
This comes after the German government’s decision to sell off their BTC, an outcome that was criticized by many. A recent development points to the possibility that the US will still sell off its Bitcoin.
Analysis on the chain revealed that the US government has moved 58.74 BTC from its website to Coinbase Prime. This action was probably with the intention of selling.
The amount moved was valued at just under $4 million, while the government’s portfolio still contains 213,239 BTC, worth over $14 billion.
Will the US Government Betray Bitcoin?
The moved BTC represented only a small and perhaps insignificant amount to the price of BTC. However, the concern for the Bitcoin community is that the transaction could be the first of many that could happen soon.
But what about Trump’s favorable Bitcoin stance?
The US elections are still three months away. This means that the current government has ample time to dump their BTC holdings within that time frame.
So far there has been no confirmation of that intention, although the recently moved funds may provide some indication.
What could be the extent of the possible consequences?
The German BTC sale offers a rough idea of what to expect. The European country had almost 50,000 BTC to dump, and its impact was certainly felt on the market.
The US owns more than four times that amount, so a sale of all or even half of its BTC holdings would be more serious.
The news that the US has pulled BTC from its wallet would first trigger a reaction from whales if it is a big sale. Bitcoin’s performance over the past 48 hours indicated that the hype has subsided.
Bitcoin’s price-to-whale ratio has fallen slightly over the past two days. This indicated declining whale activity after the previous peak in activity in mid-July.
Source: CryptoQuant
The other side of the coin points to a situation where the US could be incentivized to hold onto its BTC.
CNBC recently explored the idea of Bitcoin becoming a reserve currency. According to the US-based news outlet, moving those BTC holdings to the treasury would give the US an edge in the race for crypto dominance.
Read Bitcoin’s [BTC] Price forecast 2024-25
Bitcoin, as a reserve currency for the US, would put it on the list of the biggest HODLers. Another possible outcome is that this would make BTC more attractive and increase demand.
So far, neither of these two scenarios have come to fruition. The jury is still out on how the US will impact Bitcoin’s future.