The recent transfer of $2 billion in Bitcoin by the US government has attracted a lot of criticism from the crypto community. This move completely contradicted with Donald Trump’s pro-crypto promises and legislation proposed by Senator Cynthia Lummis to classify Bitcoin as a strategic reserve asset. Meanwhile, investor Robert Kiyosaki criticized fiat money and advocated for Bitcoin, while Raoul Pal has a very bullish outlook for Bitcoin and gold due to some promising macroeconomic conditions.
US Government’s Bitcoin Move Criticized
The United States government recently transferred $2 billion worth of Bitcoin (BTC), just two days after former President Donald Trump vowed that the US would never sell its Bitcoin holdings. This move has been labeled as ”tone deaf” by some.
It involved transferring 29,800 Bitcoin from a government wallet, which held the crypto that was seized from the Silk Road dark web marketplace in 2022, to an unknown wallet on July 29. The funds were subsequently moved to another unknown wallet.
This transfer happened not long after Trump’s pro-crypto promises during his speech at the Bitcoin 2024 conference, where he pledged that the government will keep its Bitcoin holdings and proposed making the US the ”crypto capital of the world” through a series of crypto-friendly policies, including the removal of SEC Chair Gary Gensler.
Wyoming Senator Cynthia Lummis also introduced legislation to classify Bitcoin as a strategic reserve asset for the United States, and proposed that the government buy 5% of Bitcoin’s total supply as a Treasury asset.
Galaxy Digital CEO Mike Novogratz criticized the timing of the transfer by calling it a ”tone deaf” move by the current administration. He shared his disapproval on X, and pointed out the inconsistency with Trump’s recent promises. Some speculate that the transfer might be related to a July 1 agreement between the US Marshals Service and Coinbase with the goal of safeguarding US government crypto assets.
However, not everyone is very optimistic about Bitcoin becoming a strategic reserve asset. Ari Paul, chief information officer at BlockTower Capital, estimated the chances of such an outcome at 10:1 in the next four years, suggesting a more cautious mid-term outlook for Bitcoin’s role in US reserves.
The United States government is still the largest geopolitical holder of Bitcoin, as it holds more than 183,000 BTC valued at approximately $12 billion. Data from Arkham Intelligence reveals that the US government also possesses a very diversified portfolio of digital assets, including 50,000 Ethereum (ETH), 121 million USDT, 40,000 BNB, and over 10 million USD Coin (USDC).
US Government portfolio (Source: Arkham Intelligence)
Kiyosaki Calls Fiat Money Fake and Promotes Bitcoin
Robert Kiyosaki, the very well known investor and author of ”Rich Dad Poor Dad,” recently engaged his followers on the X platform in a discussion about money and Bitcoin. In his post, Kiyosaki shared how he learned about ”counterfeiting” by melting down empty toothpaste tubes to make his own coins. In 1971, President Nixon removed the gold standard backing the U.S. dollar, leading to what Kiyosaki now describes as the Federal Reserve and U.S. Treasury ”counterfeiting money.”
Kiyosaki is not happy about the fact that schools do not teach children about money or taxes, which led to a situation where he believes 90% of people work for and save ”counterfeit” or fiat money, which he calls ”FAKE money.” He urged people to rather save in Bitcoin, silver, and gold instead.
Earlier this year, Kiyosaki also predicted that Bitcoin’s price could surge to $350,000 by August, driven by the dollar’s lack of backing and the extensive printing of USD by the Fed and the U.S. Treasury. He also pointed to the rapidly growing national debt as a factor that could positively influence the price of the crypto king.
With August just around the corner, BTC’s price fell by more than 4% over the past 24 hours of trading, according to data from CoinMarketCap. As a result of this price plunge, BTC was trading hands at $66,538.66 at press time.
Bitcoin and Gold Set for Major Breakout
Bitcoin and gold may be poised for impressive price breakouts as macroeconomic conditions improve, according to Raoul Pal, founder and CEO of Global Macro Investor. Pal shared in a July 29 thread on X that the ”macro summer” is beginning and is expected to last through the rest of 2024 and into 2025. He also suggested that Bitcoin is on the verge of breaking a ”giant cup and handle” pattern, which could potentially lead it into what he calls the ”Banana Zone,” a period of upward price movement.
For Bitcoin to confirm this breakout, it needs to close above $70,000, according to crypto trader Moataz Elsayed. Bitcoin’s open interest reached a new all-time high on July 29, which suggests that there is increased interest and liquidity that could drive the price higher.
Three catalysts support Bitcoin’s potential price breakout: the Nasdaq’s healthy correction, the upcoming US elections, and a potential weakening of the US dollar. According to Pal, election years have historically been bullish for the stock market and Bitcoin prices. Additionally, a decrease in the value of the US dollar could also push investors to turn to safe-haven assets like Bitcoin and gold to protect their purchasing power during periods of fiat currency devaluation.
Four Arrested for Bitcoin Kidnapping and Murder
Criminals are also aware of the potential of Bitcoin. Police in Kyiv, Ukraine, have arrested four suspects for the alleged kidnapping and murder of a 29-year-old foreign national Bitcoiner after stealing $170,000 worth of BTC. The suspects are aged between 24 and 29, and reportedly planned the attack and executed it around midnight on July 29. Residents alerted the police after hearing screams and witnessing a man being forced into a car.
The victim was taken to an abandoned building where he was coerced into transferring approximately 7 million Ukrainian hryvnias worth of Bitcoin (around 2.55 BTC). He was then strangled to death, and his body was buried in a forest. The suspects tried to conceal their crime by changing the car’s appearance and number plates. They also converted the stolen Bitcoin into US dollars and euros before being apprehended by Kyiv Police.
Kyiv prosecutors plan to charge the suspects with murder, robbery, illegal deprivation of liberty, and concealment of crime, all committed by an organized group. If convicted, the suspects could face life imprisonment.
The crypto community has seen several violent incidents over the years. In 2022, a crypto millionaire’s dismembered body was found in a suitcase in Argentina, and another individual was beaten to death with a dumbbell in Bulgaria, with their remains disposed of in a drain.
This article was originally Posted on Coinpaper.com
