US moves $1 billion in Bitcoin to Coinbase, threatening Trump’s reserve plan

The US government has transferred $1.92 billion in Bitcoin to new wallets, of which $963 million went immediately to Coinbase. This asset came from the Silk Road seizure, allowing the US to legally sell all of it.

Community members are concerned that President Joe Biden is trying to liquidate US reserves before Trump’s inauguration, undermining his plans to create a Bitcoin reserve.

According to data from the on-chain intelligence platform Arkham, the US government moved Bitcoin worth $1.92 billion to new wallets on Monday, November 2. This asset was divided into two new wallets, one of which subsequently transferred $963 million to Coinbase. These Bitcoins originate from the Silk Road seizures, which the US government can legally sell, raising fears of a mass sell-off.

Specifically, industry rumors fear that President Joe Biden is using his period of incapacity to intentionally burden the newly elected President Donald Trump. As a campaign promise, Trump vowed to create a US Bitcoin reserve, starting with significant amounts that the government already owns.

The US is currently one of the largest holders of Bitcoin due to the ongoing crackdown on illegal entities and criminal groups on the dark web. This supply could potentially help Trump establish a national Bitcoin reserve when he takes office in January, without taking significant additional funds from the economy.

However, although Trump won the election, crypto analysts theorized that Biden could use his remaining time in office to liquidate a large portion of the US supply. It is concerning that Biden has used this strategy in other areas of policy, giving billions to Ukraine to prevent Trump from changing US policy.

Despite this, the crypto community does not seem overly concerned. Four months ago, the US government was ready to sell $600 million in Bitcoin, and the markets fell. Nevertheless, Bitcoin recovered and entered a growth phase after increased institutional interest.

Similarly, since these transfers were first reported, the price of Bitcoin has moderately fallen. However, shortly thereafter, its value began to rise. Thus, long-term holders remain confident in Bitcoin’s bullish prospects despite all the liquidation rumors. This is evident in the actions of public companies, as MicroStrategy and MARA continue to buy more Bitcoin.

Regardless of these events, Trump will likely create a reserve with the Bitcoin that remains under federal oversight. Additionally, it will be extremely difficult for Biden to sell everything by January. Furthermore, several corporate ‘whales’ are on standby to purchase that asset themselves.