In what could be a highly politically charged move, the US Democratic Party orchestrated the transfer of 29,800 bitcoins, worth nearly $2 billion, to a newly created address on Monday. The development, first reported by crypto intelligence platform Arkham, has not only stunned the market but also sparked considerable speculation and debate within the industry.
Arkham a report He explained that this huge amount of bitcoin was split into two separate addresses: 10,000 bitcoins are now at bc1qlap8 and 19,800 bitcoins at bc1qngy. Analysts at Arcam believe that the 10,000 bitcoins represent a deposit in an institution or custodial service, indicating a possible willingness to sell.
The transactions came shortly after former US President and current presidential candidate Donald Trump announced at the Bitcoin 2024 conference on Saturday that he intends to prevent the US government from selling its large holdings of Bitcoin. Before yesterday’s move, the US government owned more than 213,000 Bitcoin.
Trump has promised to block any sales of government holdings of bitcoin, envisioning it as a cornerstone of a new national strategic reserve of bitcoin. Meanwhile, advisers to Vice President Kamala Harris, also a Democratic presidential candidate, have been reaching out to leading crypto companies to “reset” the relationship. The outreach is reportedly aimed at bridging the gap between the Democratic Party and the bitcoin and cryptocurrency industry, which has recently emerged as a key backer of Trump, Harris’s direct rival in the presidential race.
However, recent activity involving the sale of Bitcoin tells a different story. The move signals a potential shift in strategy, which stands in sharp contrast to the outreach efforts. According to various experts in the Bitcoin and cryptocurrency industry, the development signals a move to thwart Trump’s “hoarding” plans. Despite the sale, the U.S. government still holds 183,439 Bitcoins, worth an estimated $12.6 billion — assets that could be liquidated before Trump’s likely inauguration in January 2025 if he wins the election.
Bitcoin Industry Reactions
David Bailey, CEO of Bitcoin Magazine and a Trump campaign adviser, was among the first to criticize the move. statement“I just landed in Miami and saw the Harris administration preparing to dump 30,000 Bitcoin just to annoy Donald Trump. This would be a huge political mistake on the part of the Democrats. If they continue to loot American Bitcoin, they will alienate a generation of voters forever.”
Eric Weiss, CEO of Bitcoin Investment Group, echoed this sentiment, highlighting the political risks involved: “The Biden/Harris administration is providing a masterclass in how to lose 30 million votes.”
Galaxy Digital CEO Mike Novogratz criticized the timing of the decision and the political sensitivity, especially after Trump’s public commitment to preserving government property. He commented: “Does anyone not listen to music? Moving Silk Road Bitcoin two days after Trump pledged not to move it is so stupid!!!!”
Tyler Winklevoss, co-founder of cryptocurrency exchange Gemini, pointed to the broader implications of the Biden-Harris administration’s relationship with the crypto industry. note He underscored the tensions between the crypto industry and US Democrats: “On Saturday, Donald Trump pledged not to sell any of the US government’s bitcoin. Two days later, the Biden-Harris administration moved $2 billion worth of bitcoin from Silk Road. Great look and a great way to reset our industry.”
Cryptocurrency Analyst MacroScope (@MacroScope17) soothsayer In an article by David Bezos, an economic analyst at Forbes in New York, about potential countermeasures by Trump, which hint at a political retaliation that could resonate with Bitcoin supporters and voters alike: “If the government now sells Bitcoin following Trump’s pledge, expect him to respond forcefully by promising to instruct the Treasury to buy it back (an RFK/Lummis-type proposal) to replenish U.S. reserves.”
Peter Schiff, a well-known critic of Bitcoin, Criticize Trump’s original plan, noting: “If Trump really intended to use the confiscated bitcoin to start a US ‘strategic’ reserve, he would have kept his intention secret until he actually took office. Now that the Biden administration has caught wind of his plan, it will make sure every single Satoshi is sold before Trump takes office.”
At the time of publishing this report, BTC was trading at $66,656.
Featured image by TheDailyGuardian, chart by TradingView.com