US Government Transfers $2 Billion in Bitcoin Amid Pro-Crypto Promises

Trump's Pro-Crypto Speech
Community Reaction
Possible Explanation
Skepticism About Strategic Reserve

The United States Government has transferred $2 billion worth of Bitcoin, just two days after former President Donald Trump assured that the US would not sell its Bitcoin holdings. Blockchain analysis platform Arkham Intelligence reported that on July 29, a government wallet containing Bitcoin seized from the Silk Road dark web marketplace in 2022 transferred 29,800 BTC to an unknown address. The funds were subsequently moved to another unknown wallet.

Trump's Pro-Crypto Speech

This transfer occurred shortly after Trump’s speech at the Bitcoin 2024 conference, where he promised that the US government would retain its Bitcoin holdings and aimed to make the US the “crypto capital of the world.” Trump also proposed crypto-friendly policies, including firing SEC Chair Gary Gensler. In addition, Wyoming Senator Cynthia Lummis introduced legislation to designate Bitcoin as a strategic reserve asset for the US, proposing the purchase of 5% of Bitcoin’s total supply.

Community Reaction

Galaxy Digital CEO Mike Novogratz criticized the timing of the transfer, calling it “tone deaf” in a post on X. "Moving Silk Road BTC two days after Trump’s pledge to not move them is just dumb!!!!” he exclaimed.

Possible Explanation

Some crypto commentators speculate that the transfer might be linked to a July 1 agreement between the US Marshalls Service and Coinbase, where the exchange was contracted to safeguard US Government crypto assets. The US currently holds $12 billion in Bitcoin, largely from confiscations and seizures from illicit activities.

Skepticism About Strategic Reserve

Despite the pro-crypto promises, not everyone is optimistic about Bitcoin becoming a US strategic reserve asset. BlockTower Capital’s CIO Ari Paul estimated the likelihood of this happening within the next four years at just 10:1, indicating skepticism about the proposal's feasibility in the near term.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

US Government Transfers $2 Billion

Sujit Kumar

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.