Speculation Rages Over DOJ’s Bitcoin Sales
Rumors have been flying that the DOJ was planning to sell seized Bitcoin, but no on-chain activity has proven this to be true. Blockchain intelligence firm Arkham has confirmed that U.S. authorities still maintain about $6.44 billion worth of Bitcoin, including assets seized from Silk Road and FBI operations. Reports indicated that a federal court had approved the liquidation of 69,370 BTC, but those holdings have not moved.
Federal Ruling Sparks Rumors
Speculation has run rampant since the reports of a federal judge approving the sale back in late December. The details are few and far between, so some industry experts are still skeptical. Initially, market participants thought the DOJ was gearing up for a major offload that could impact Bitcoin prices, but those fears have cooled down on the lack of evidence of any transactions.
This news comes at a time when political transitions are about to take place in Washington. The upcoming inauguration of President Donald Trump on January 20 has thrown the spotlight on his administration’s policy regarding cryptocurrency. Trump has expressed his support for the U.S. retaining its Bitcoin and forming a national BTC reserve. This is in contrast to concerns over possible liquidation.
National Bitcoin Reserve Push
Trump’s position on cryptocurrency aligns with that of Senator Cynthia Lummis, a vocal Bitcoin supporter who has sponsored legislation to support reserves of Bitcoin at the Federal Reserve. Federal Reserve Chair Jerome Powell said recently that the central bank cannot legally hold cryptocurrency under current rules, which some have argued need to be updated.
Industry leaders are now urging Trump to sign an executive order in his first 100 days in office that creates a Bitcoin reserve. Texas and Ohio have already started working on legislation involving Bitcoin, further fomenting the growing excitement of institutional investors toward cryptocurrency as a strategic asset.
Uncertainty Over US’s Bitcoin Cache
As President Joe Biden’s term winds down, the future of the U.S. government’s Bitcoin holdings is not certain. It is not known whether the DOJ will move on the reported court ruling to sell or keep holding the assets. Market observers continue to watch for any development, as such a large sale could have great influence on cryptocurrency markets.
For now, the $6.5 billion in seized Bitcoin remains untouched, underscoring the U.S. government’s complex relationship with digital assets.
