If the US government sells its BTC stash, it won't have a significant impact on the market.

The price of Bitcoin ( BTC ) has been skyrocketing lately, and it seems that nothing 
can stop it. Some believe that even if one of the biggest whales of  BTC , the US government, decides to sell its stash, which is now worth billions of 
dollars, it will not have a significant impact on the market as
BTC trading volumes   more than double in a month.

It was reported that in November the US Justice Department has confiscated  69,370 
Bitcoins worth more than  1  billion US dollars. Just a few hours ago, he was worth more than  2.7  dollars billion as  BTC  is trading at 
39,629  US dollars, after yesterday, he briefly touched  42,000  dollars

The US government now controls the  6th richest BTC  address 
(and  4th richest, excluding addresses controlled by crypto exchanges).

Meanwhile, California's Northern District Attorney's Office recently filed a civil 
complaint about the confiscation of these coins. Historically, bitcoins can be 
auctioned off by the US Marshal Service. This is exactly what happened in  2014  and  2015  , when the US government took control of more than  144,000  BTC  - 
worth $  122  million at the time and   $ 5.7 billion today - and sold them.

Indeed, auctioning bitcoins could be tempting for a new administration, for which the money faucet is poised to expand as the 
pandemic tightens its impact on the economy.

The question of "US national security"

If the United States government takes the same path this time around, it is difficult to
predict how the market will react until it does. However, Pierre 
Rochard, Bitcoin strategist on the Kraken exchange  , points out that the sale will be a drop in the ocean compared to the active trading activity in the BTC market   lately 
. Today,  24 hour trading volume  BTC  is about  70  billion  $  (in December it amounted to an average of about  30  billion  $ ).

But he said he was worried about the big picture:

"I think the auction will undermine US national security."

In a recent post on  GitHub,  Rochard further noted:

“The prompt auction of the seized bitcoin [in  2014  and  2015  ] was, in my opinion, a mistake. The Federal Reserve System can create an infinite amount of US dollars at auction. Bitcoins cannot be created from scratch, and their number is limited. "

As a result, Rochard explains that he is "lobbying for a law prohibiting the 
auction for reasons of United States national security."

One of the bills he supports is the HODL Bitcoin Act , 
which will allow the US Bailiffs Service to  “safely store and store  seized Bitcoin  assets until the  next law is passed, with immediate effect. ".
Instead,  BTC  will be held in a custodial wallet, which will be 
managed by the US Treasury without threat of sale, exchange, auction, or other 
encumbrance of assets until new legislation is passed.

The Department of Justice did not respond to our request for comment.

Meanwhile, Rashid Ajaja, CEO and founder of  AllianceBlock , 
recently said that it is unlikely that BTC whales   - those with enough  BTC to 
influence the price - will sell anytime soon.

“Bitcoin is currently experiencing a supply shock and miners are struggling to keep up with demand. For this reason, it is unlikely that any whales will give 
up BTC liquidity until the price gets close to $ 100K, "he said, adding that any collapse we see will not be as drastic as the
 ones we see. seen before due to increased network effects. and institutional participation.

Ditto by the way. Newly elected President of the United States of America Joe Biden is working with his administration to prepare a $ 3 trillion fiscal stimulus 
. And this could lead to a sharp rise in the price of bitcoin.

JPMorgan Chase says Bitcoin is taking market share from gold, a traditional 
haven asset. On Friday, the price of one bitcoin was at over  22  ounces of
 gold, a new record.

Source: coindity.com


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Category: News | Views: 83 | Added by: 4zvezda | Tags: #Bitcoin #Bitcoin markets #BTC | Rating: 0.0/0
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