Key Takeaways:
- Criticism of Bitcoin Sales: Industry leaders, including Jason Lowery, condemned the U.S. government’s transfer of 19,800 BTC to Coinbase as a strategic misstep, highlighting ignorance of Bitcoin’s potential.
- Unclear Intentions: Analysts suggest these transfers may not signify sales, citing custody or wallet consolidation as alternative explanations.
- Market Impact: Bitcoin briefly dropped 3% to $94,500 after the news but rebounded to $96,000, reflecting market volatility amid uncertainty.
The U.S. government’s recent transfer of $1.9 billion worth of Bitcoin (19,800 BTC) to Coinbase has sparked significant criticism from crypto industry leaders and analysts, who view it as a strategic misstep.
Jason Lowery, a U.S. Space Force officer and author, argued the government undervalues Bitcoin’s potential, warning the sale may echo past misjudgments like Executive Order 6102, which confiscated gold in 1933.
Agreed – the U.S. government should never sell Bitcoin IMO. https://t.co/FYRUh0wp1T
— Brian Armstrong (@brian_armstrong) December 2, 2024
Coinbase CEO Brian Armstrong and others echoed concerns, suggesting retaining Bitcoin would better serve long-term interests.
Critics called the sale a wasted opportunity, as the supply would likely be quickly absorbed by the market.
While some analysts interpret these transfers as sales, others suggest they may involve wallet consolidations or custody-related actions.
According to Spot On Chain, 10,000 BTC were sold, while 9,800 BTC were transferred to a new address.
Transparency remains an issue, with no official auction details disclosed.
The U.S. government still holds approximately 183,850 BTC, valued at $17.7 billion.
Market reactions to the news were swift, with Bitcoin prices briefly dipping before recovering.
Critics view the move as shortsighted, potentially undermining the U.S.’s strategic position in the growing cryptocurrency space.
The debate underscores broader concerns about the government’s understanding and handling of Bitcoin.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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