- The U.S. government has initiated a transfer of 29,800 Bitcoin, valued at approximately $2 billion, leading to speculation of fresh sales.
- These sales could heavily impact BTC prices, however, this phase could be shortlived as Trump’s ascent to the presidential seat could lead to a strategic Bitcoin reserve.
The government is preparing to sell a huge stash of its Bitcoin holdings according to the latest data shared by crypto intelligence platform, Arkham. This has led to speculation that the government is preparing to send part of its holdings to crypto exchanges.
The German government has recently conducted a similar exercise with the government selling billions of dollars worth of tokens in the open market. With supply high and demand fading, this put the digital asset under immense pressure leading to a price plunge to the $55,000 lows.
The Biden administration, which has been viewed as hostile to the crypto industry, seems to be moving ahead with plans to sell part of the 200,000 BTC stash. The stash which makes the government one of the largest holders could significantly impact prices.
These developments follow the emergence of pro-crypto presidential candidates, including leading candidate Donald J Trump. In fact, Trump has recently told the community that he does not plan to sell any more coins once in office. Furthermore, he has revealed he is open to establishing a Bitcoin reserve as proposed by Senator Cynthia Lummis and backed by presidential candidate John F. Kennedy Jr.
It was recently revealed that Democrat flag bearer Kamala Harris, who emerged as the candidate after President Biden stepped down, is looking to ‘reset’ her relationship with the community. However, this has been received with great skepticism in the community, and with good reason. The administration is now acting in bad faith as it seemingly looks to sell off the coins already in its possession. If so, this will not bold well for Harris and will boost Trump’s odds.
At the time of writing, BTC is exchanging for $66,445 after a marginal positive change. Although the coin has staged a rebound in recent weeks based on its technical setup and inflows into Bitcoin spot ETFs.
Analysts predict that a Trump win in the upcoming November elections will be positive for Bitcoin and the entire crypto landscape. With friendlier crypto regulations and institutional-led adoption, experts foresee the asset reaching a new all-time high of anywhere between $100,000 and $250,000 in the upcoming bull cycle.
But a U.S. sell-off could lead to a temporary price drop, which some investors could view as an opportunity to accumulate ahead of the bullish breakout.
