Crypto Analysts, Founders, and observers have all called out the US government for transferring $1.9 billion BTC to Coinbase Exchange on Monday.
The crypto community reacted to the US government’s selling BTC at the cusp of a massive Bull run.
The United States which has been the driving force behind the November bull rally as it prepares to inaugurate a crypto-friendly president has suddenly made the decision to sell the most-priced crypto asset.
Jason Lowery, a United States Space Force major and Crypto author reacted to the decision calling it a mistake and a revelation that the current US government does not know the value of Bitcoin.
“Just so I have something on permanent record that I can point to in the future. This is a huge strategic mistake. There is no price where it makes sense for the US to sell any #Bitcoin it has under its control. They have no idea what they own, and it shows” Jason tweeted.
“Remember this post when they inevitably try to justify a new version of EO 6102 to reclaim the Bitcoin they sold off due to their ignorance about the true significance of this technology.”
EO 6102 is an executive order signed in 1933 by President Franklin D. Roosevelt “forbidding the hoarding of gold coin, gold bullion, and gold certificates” in the United States. He added.
Coinbase CEO Brian Armstrong whose crypto exchange is the recipient of the $1.9 billion from the US government added to the conversation admitting that the United States should not be selling Bitcoin under any circumstances.
Brian Armstrong was quizzed by a follower on why his company Coinbase doesn’t own more Bitcoin. He replied in defense revealing how much BTC Coinbase holds and questioned the rationale behind the question.
“About 25% of our balance sheet, net of debt, is held in crypto (about half of that is Bitcoin, similar to % of total market cap).
Almost all our liabilities are still priced in dollars, unfortunately, so just a question of how much risk to take. We’re not a hedge fund. What % do you think it should be? I think there is a reasonable argument it could be higher — just a question of how much and why.” Brian replied
$2.49 Billion worth of BTC transferred to Coinbase this year
The US government has transferred a total of $2.49 billion to Coinbase this year around 25,999 BTC. However, the Analytics platform Spot on Chain argued that these actions could be custody actions and not outright sales.
The Analytics firm confirms that the US government holds about 183,850 BTC worth around $17.7 billion across various known addresses.
What to Know
- Bitcoin the flagship crypto asset dipped slightly after the transfer, shedding 3% and retailing for $94,500. The asset has been corrected to $95,368 at the time of writing.
- The German Government was the last state to sell Bitcoin dumping over 50,000 BTC at an average price of $57,200.
