‘Tone deaf’ — US moves $2B Silk Road BTC after Trump’s stockpile pledge

Tom Mitchelhill6 hours ago‘Tone deaf’ — US moves $2B Silk Road BTC after Trump’s stockpile pledgeThe move comes just two days after Donald Trump declared he would create a “strategic national Bitcoin stockpile” if reelected.5753 Total views16 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksUpdate July 30 at 4:20 am UTC: Added comment from Binance head of VIP and institutional, Catherine Chen.

The United States government has transferred $2 billion worth of Bitcoin two days after former President Donald Trump promised that the US would never sell any of its Bitcoin during a speech at the Bitcoin 2024 conference in Nashville, Tennesse, in what one commentator has labeled “tone deaf." 

According to data from blockchain analysis platform Arkham Intelligence, the government wallet — which stored the Bitcoin seized from the shuttered dark web marketplace Silk Road in 2022 — transferred 29,800 Bitcoin (BTC) to an unknown wallet address on July 29.

The funds have since moved to another unknown wallet.The US government transferred $2 billion worth of BTC on July 29. Source: Arkham Intelligence

The transfer comes just two days after Trump made a series of pro-crypto promises during a speech at the Bitcoin 2024 conference.

Trump promised the US government would not sell any of its currently-held Bitcoin and declared that he would make the US the “crypto capital of the world” by rolling out a series of crypto-friendly policies, including firing current Securities and Exchange Commission Chair Gary Gensler. 

In addition to Trump’s promise, Senator Cynthia Lummis announced the introduction of legislation to make Bitcoin a strategic reserve asset of the United States.

The Wyoming lawmaker proposed a plan to purchase 5% of Bitcoin’s total supply and hold the digital commodity as a Treasury asset. Lummis called the proposal a 21st-century “Louisiana Purchase,” in a reference to the purchase of the American Midwest from the French for $15 million in 1803.

Binance’s head of VIP and institutional, Catherine Chen, told Cointelegraph the recent spotlight on Bitcoin from Trump and other senior US officials was a “positive sign” for digital assets across the board. 

“What is clearly meaningful is that politicians and prominent industry leaders are explicitly stating their positions, recognizing the value of Bitcoin in the monetary system, and making it clear that crypto is important on their agenda,” said Chen.“This likely means more regulatory clarity as governments need to make their stance clear.”

She added that Binance had recently introduced what it calls the Capital, People, Technology (CPT) Framework to isolate specific structural factors that influence market dynamics.

“The establishment of strategic Bitcoin reserves will drive structural conditions under all three categories of our CPT Framework and advance the crypto market for the long term,” she said.Crypto pundits respond to Silk Road transfer

Galaxy Digital CEO Mike Novogratz lashed out at the recent fund movement, calling it a “tone deaf” move by the current administration in a July 29 post to X.Source: Mike Novogratz

Meanwhile, several crypto commentators suggest the transfer could be linked to a July 1 agreement between crypto exchange Coinbase and the US Marshals Service, which signed a deal to “safeguard” US government crypto assets.Source: Adam Cochran

The US government currently holds $12 billion in Bitcoin, with the vast majority of this sum coming from various confiscations and seizures of crypto assets from nefarious actors.

Related: United States government holds $12B in Bitcoin — Arkham Intelligence

Not everyone is optimistic that Bitcoin could become a strategic reserve asset in the US. BlockTower Capital’s chief information officer, Ari Paul, said the odds are not stacked in favor of the outcome many are looking for, with bullish optimism for the price of BTC in the mid-term.

Paul pinned the chances of Bitcoin becoming a US strategic reserve asset at 10:01 within the next four years.

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