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Early this morning, the US government announced through court documents that the bitcoins stolen in the 2016 Bitfinex hack should be returned to the exchange in physical form. This Bitcoin totals 94,643 BTC, worth $9.4 billion as of this writing, as published on the blockchain through Arkham Intelligence.
Just five days before pro-Bitcoin Donald Trump is sworn in for a second term, the US government appears to be moving the bulk of its US Bitcoin holdings back to Bitfinex. At the Bitcoin 2024 conference in Nashville last summer, President Donald Trump pledged to create a national strategic Bitcoin stockpile using Bitcoin the government already owns from hacks and seizures. . According to data from Arkham Intelligence, the United States currently holds the equivalent of 198,109 Bitcoins. Over $20.1 billion. If these coins are returned to Bitfinex, the strategic reserves promised by President Trump will be reduced by 47.77% to 103,466 BTC.
BREAKING NEWS: ๐บ๐ธDonald Trump vows never to sell #bitcoin Held as a strategic reserve asset if elected president pic.twitter.com/bbPRxlZfGZ
โ Bitcoin Magazine (@BitcoinMagazine) July 27, 2024
If the government is going to acquire large amounts of Bitcoin in the near and long term, I would be bullish on starting as close to zero as possible. Because doing so requires market purchases. Add more and drive up the price. The court documents state that the bitcoins should be returned in kind, which would eliminate the need to sell these coins for dollars and reduce the downward pressure on the bitcoin price from the sale. means. Furthermore, it seems like the right thing to do that Bitcoins are returned to their rightful owners, and I'm sure Bitfinex would be excited to get their coins back too.
But if the U.S. government intends to buy large amounts of Bitcoin for strategic reserves, it would need to sign a bill proposed by Wyoming Sen. Cynthia Lummis to do so. As we can see from President Trump's promise alone, he initially intended to keep the seized Bitcoin held on the government's balance sheet as a strategic reserve, with the possibility of acquiring more BTC through other means. I didn't make any difficult promises about it, just because of my gender. Under the bill proposed by Sen. Lummis, the United States would purchase 200,000 Bitcoins annually for five years until they accumulate a total of 1 million Bitcoins.
JUST IN: U.S. Senator Cynthia Lummis outlines strategy #bitcoin Reservation plan: "Buy 200,000 BTC per year for 5 years. Total 1 million BTC." ๐บ๐ธ pic.twitter.com/57ofJhc8X0
โ Bitcoin Magazine (@BitcoinMagazine) November 21, 2024
No matter how this plays out, the Strategic Bitcoin Reserve will be bullish for the country and for Bitcoin overall. Clearly, Senator Lummis' bill is by far the most bullish of the potential outcomes, as it would buy back in the market all of the Bitcoin that was scheduled to be returned to Bitfinex, plus an additional 905,357 BTC. Probably. This huge buying demand will most likely cause the price of Bitcoin to soar, especially as other governments around the world have started buying as well to keep up with our government's purchases.
Even if Mr. Lummis' bill doesn't materialize and we only get the reserves promised by President Trump, I believe it's enough to cause other governments to FOMO and create their own reserves. .
With only about 450 new Bitcoins being mined every day, and institutional Bitcoin purchases already outpacing the new supply of BTC mined this year, things could get crazy really fast. there is. Fasten the buckle.
JUST IN: Corporate demand #bitcoin Already exceeds new Bitcoin supply this year ๐
Bullish๐ pic.twitter.com/PyKk9Aci93
โ Bitcoin Magazine (@BitcoinMagazine) January 13, 2025
This article is take. The opinions expressed are solely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.
