Trump and Kennedy’s Proposal
In their campaign, Trump and Kennedy suggested including government-held Bitcoin in national reserves. They aimed to leverage this asset for the country’s financial stability.
Biden’s Countermove
However, President Biden seems determined to thwart this plan. According to Arkham Intelligence, 30,000 BTC out of the 200,000 BTC held by the government have been moved. This suggests a potential sale to prevent adding these assets to national reserves.
Economist’s Perspective
Economist Peter Schiff believes Trump should have remained silent. Now, it seems the Biden administration plans to sell every last satoshi. This action is seen as a direct counter to Trump’s proposal.
Market Impact and Recent Trends
The news caused Bitcoin to drop by 5% within 24 hours. Earlier in July, Bitcoin faced selling pressure from the German government, which sold 50,000 BTC for $3 billion. Additionally, former clients of the Mt.Gox exchange received 62,000 BTC (~$4 billion). According to Glassnode, in the last two months, major players have sold 147,500 BTC, worth around $10 billion.
Trader Reactions and Market Resilience
Negative news led traders to favor short positions in futures markets, pushing funding rates below neutral levels. Despite these challenges, Bitcoin remains near its peak. Long-term trends, such as the introduction of spot ETFs in the U.S., the upcoming halving, and potential Federal Reserve policy shifts, support the market. Long-term holders (LTH) continue to accumulate coins, even as short-term holders (STH) take profits. The convergence of accumulation curves indicates a potential bullish trend.
Potential Outcomes of a Bitcoin Sale
If Biden’s administration proceeds with a rapid sale of the Bitcoin reserves, a market correction is likely. However, in the long term, this event may have minimal impact on Bitcoin’s overall market trajectory.
