Trump Bitcoin 2024 Trump Bitcoin 2024
Donald Trump promised Bitcoiners at the Bitcoin 2024 conference that if he gets elected, he will implement a "hodl" strategy for the U.S. government's $BTC holdings. IBTimes US

KEY POINTS

  • The wallet split $2 billion worth of Bitcoins into two addresses, Arkham revealed Monday
  • Crypto users are questioning the motives behind the transfer, especially after Bitcoin 2024
  • Some users said the current administration may be challenging Trump's 'hodl' plan

Hype around the Bitcoin 2024 conference in Nashville propelled the world's largest cryptocurrency's value to nearly $70,000 earlier Monday, but the digital currency quickly shed $4,000 Monday night after a digital wallet linked to the U.S. government moved some $2 billion worth of seized Bitcoins.

Bitcoin bleeds $4,000

$BTC prices were already trading at $66,900 Monday but as news of the wallet's activity spread, the digital coin plummeted to the $66,000 lows within less than 12 hours, as per data from CoinGecko.

Bitcoin price late July 29 2024
Bitcoin was close to $70,000 when it took a nosedive Monday night. IBTimes US

US government wallet moves $BTC stash

Bitcoin's plunge came after blockchain analytics leader Arkham Intelligence revealed Monday that a wallet linked to the U.S. government "split the $2B Bitcoin into two addresses," with one address receiving 10,000 Bitcoins and the other receiving 19,800 $BTC.

A similar movement in the digital currency's price was observed last week, after the wallet linked to the U.S. government moved nearly $4 million in seized Bitcoins. The coins were seized from Ryan Farace, who was convicted for selling Xanax on the dark web and accepting $BTC payments for his drug trafficking activities.

Why did the US government move the seized coins?

Arkham said it believes the transfer "represents a 10,000 BTC deposit to an institutional custody/service." Senior Bloomberg ETF analyst James Seyffart suggested that the move could have been related to the recent announcement from cryptocurrency exchange giant Coinbase.

The crypto titan announced earlier this month that it was selected by the U.S. Marshals Service to provide custody and trading services to the digital assets held by the agency. "The USMS conducted a competitive due diligence process that evaluated a range of solutions, ultimately choosing Coinbase due to our strong track record and ability to securely provide institutional-grade crypto services at scale," the exchange said at the time.

Crypto users question motives

On X, crypto users are discussing beyond the "why," debating on the motives behind the transfer. One user asked what the government will do with all the seized $BTC it olds. "Will they use it to invest back in the economy or fund a war? Or sell it?" the user asked.

Another user suggested there could be an "insider or a group of insiders" shorting Bitcoin before the coins are moved. One user questioned why the funds had to be split into two separate wallets if the purpose was for custody.

A 'coincidence'?

Investor at @WClementeIII said it was "not a coincidence" that the massive Bitcoin stash was moved after Republican presidential nominee Donald Trump promised to support $BTC and the broader crypto space during Bitcoin 2024.

Notably, Trump announced a plan to make the U.S. government "hodl" all of its Bitcoin holdings if he gets elected.

Another Bitcoiner said it appears as if the current administration was "trying to counter" Trump's "hodl" campaign. "If there's no Bitcoin left when he gets to office then it's a moot point."