Bitcoin (BTC) critic Peter Schiff predicted that the United States (US) government under President Joe Biden would sell all of its holdings in the digital asset shortly after discovering that the government had transferred $2 billion worth of BTC to two new ones.
He truly believes the Biden administration will sell all the seized BTC to prevent President Trump from using it for US strategic reserves even though Trump has yet to give any further details.
Trump's declaration of BTC as a strategic reserve has marked a significant shift in government policy towards cryptocurrencies plus his announcement is seen as a bullish signal for the BTC market.
However, the movement of confiscated assets has cast doubt on the future of the strategy as critics argue that the current administration's actions could undermine the potential benefits of holding BTC as a reserve asset.
The transfer of large amounts of BTC has raised concerns about potential market impact as large-scale trading could cause significant price volatility that could affect investor sentiment and market stability.
It's true that some believe the potential sale of the US government could be an opportunity for institutional investors to acquire BTC at a lower price, but others fear it could signal a bearish trend for the crypto market.
As of this writing, BTC price has plunged by 2.56% to $66,772 in the last 24 hours with a market capitalization of $1.3 trillion and has recorded a 0.86% decline over the past week.