US Government Selling Bitcoin Is Considered a Huge Strategic Mistake by Observers

A Billion-Dollar Blunder: Experts Weigh In on the US Government’s Bitcoin Transfer

In a move that has left many in the crypto community scratching their heads, the United States government recently transferred $1.9 billion worth of Bitcoin to Coinbase. The decision has been met with criticism from industry executives and observers, who claim that it is a huge strategic mistake.

"A Huge Strategic Mistake"

Jason Lowery, a United States Space Force major and author of "Softwar: A Novel Theory on Power Projection and the National Strategic Significance of Bitcoin," was quick to point out the folly of the government’s decision. In an interview with [insert publication], he stated:

"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."

Lowery’s comments were echoed by Coinbase CEO Brian Armstrong, who added his own opinion to the conversation on social media.

"They Have No Idea What They Own"

Lowery continued to express his disappointment with the government’s decision, stating:

"They have no idea what they own, and it shows. 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: A Warning Sign

For those who may not be familiar with EO 6102, it 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.

A Billion-Dollar Question: What’s Next?

The US government has transferred a total of 25,999 BTC worth around $2.49 billion to Coinbase this year, but experts are still trying to determine whether these transfers are custody actions or sales.

Toby Cunningham, a crypto educator, weighed in on the situation, stating:

"If they are dumb enough to sell (which we all know governments are dumb), then that supply will get eaten up instantly."

Another observer added their two cents, saying:

"Biden will do as much damage as he can before he leaves office."

A Closer Look at the Numbers

According to analytics platform Spot On Chain, the US government holds about 183,850 BTC worth around $17.7 billion across various known addresses.

"Highly Likely" That Only 10,000 BTC Were Sold

Julio Moreno, head of research at CryptoQuant, suggested that only 10,000 BTC were sold in the most recent movements, as these were sent to Coinbase Prime, while the remaining 9,800 BTC went to a newly created address.

A Billion-Dollar Blunder: The Consequences

The transfer of $1.9 billion worth of Bitcoin has already had an impact on the market, with prices dipping sharply at the time of the transfer.

However, it’s worth noting that the asset had recovered to about $96,000 by the time of writing.

Related Articles:

• Mt. Gox and US gov’t could introduce $15B Bitcoin selling pressure
• Legal issues surround the FBI’s creation of fake crypto tokens

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