Yigit Taha OZTURK 
Executives and observers in the crypto industry strongly criticized the US government‘s decision to transfer $1.9 billion worth of Bitcoin to Coinbase.
“This Is a Huge Strategic Mistake”
Jason Lowery, an engineer with the US Space Force, voiced his concerns on X on December 3, calling the government’s Bitcoin sale a major blunder:
“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.”
Lowery warned that this sale might pave the way for a future Executive Order similar to 6102, which could be used to reclaim Bitcoin sold due to a lack of understanding about its true significance. Executive Order 6102, signed in 1933 by President Franklin D. Roosevelt, prohibited the hoarding of gold in the US.
19,800 Bitcoin Transferred
On December 2, the US government moved 19,800 BTC (worth approximately $1.9 billion) to a Coinbase Prime deposit address.
Coinbase CEO Brian Armstrong echoed Lowery’s sentiments, stating that the US should hold its Bitcoin rather than sell it.
“If they are dumb enough to sell (which we all know governments can be), that supply will be snapped up instantly,” said crypto educator Toby Cunningham. Another observer remarked, “Biden will inflict as much damage as he can before leaving office.”
In total, the US government has transferred 25,999 BTC (valued at approximately $2.49 billion) to Coinbase this year. However, analysis from Spot On Chain suggests these movements might represent custodial actions rather than outright sales.
Gabor Gurbacs, strategy advisor at Tether, speculated that the government might be consolidating wallets or updating old addresses:
“There’s also a lot we don’t know. It’s not guaranteed they will sell. I haven’t seen any official auction announcements yet.”
Julio Moreno, Head of Research at CryptoQuant, indicated it was “highly likely” only 10,000 BTC were sold in the most recent transactions, as these were sent to Coinbase Prime, while the remaining 9,800 BTC went to a newly created wallet.
Total Bitcoin Holdings of the US Government
According to Spot On Chain, the US government currently holds approximately 183,850 BTC (valued at around $17.7 billion) across known wallets.
Bitcoin Price Impact
The transfer caused Bitcoin prices to drop sharply, falling nearly 3% to $94,500. At the time of writing, the asset had rebounded to around $96,000.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.