This morning, the U.S. government, as detailed in a court filing, announced the decision to return stolen bitcoin from the Bitfinex hack in 2016 to the exchange. The total amount of 94,643 BTC, valued at $9.4 billion currently, can be traced on the blockchain through Arkham Intelligence.
Close to the start of President Donald Trump’s second term, the U.S. government is preparing to send a significant portion of its bitcoin holdings back to Bitfinex. Trump previously pledged to establish a national strategic reserve of bitcoin during The Bitcoin 2024 Conference, and based on Arkham Intelligence data, the U.S. currently possesses 198,109 bitcoin valued at over $20.1 billion. Returning these coins to Bitfinex would reduce Trump’s strategic reserve to 103,466 BTC.
BREAKING: ๐บ๐ธ DONALD TRUMP PLEDGES TO NEVER SELL #BITCOIN AND HOLD IT AS A STRATEGIC RESERVE ASSET IF ELECTED PRESIDENT pic.com/bbPRxlZfGZ
— Bitcoin Magazine (@BitcoinMagazine) July 27, 2024
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The decision to return the bitcoin in-kind would positively impact the market as it eliminates the need to sell the coins for fiat, thereby avoiding potential downward pressure on bitcoin’s value. This move reinforces the integrity of returning the coins to their rightful owner, generating anticipation at Bitfinex for the recovery.
For the government’s strategic reserve acquisition, Senator Cynthia Lummis’ proposed legislation needs to be enacted. Trump’s initial plan involves retaining the seized bitcoin on the government’s balance sheet with the prospect of further acquisitions. However, Senator Lummis’ proposal entails the purchase of 200,000 bitcoin annually for five years, totaling 1,000,000 BTC.
JUST IN: US Senator Cynthia Lummis outlines Strategic #Bitcoin Reserve plan: "purchase 200k BTC per year for five years. 1m BTC total." ๐บ๐ธ pic.com/57ofJhc8X0
— Bitcoin Magazine (@BitcoinMagazine) November 21, 2024
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The establishment of a strategic bitcoin reserve, whether through Trump’s plan or Senator Lummis’ proposal, will have a bullish effect on both the nation and the overall Bitcoin market. The sheer buying demand suggested by Senator Lummis’ bill could potentially drive the price of bitcoin significantly higher, prompting other governments to follow suit. With institutional purchases already surpassing daily mining outputs, the potential for a rapid market acceleration is imminent. Prepare for an exciting journey ahead.
JUST IN: Corporate demand for #Bitcoin is already outpacing new bitcoin supply this year ๐
Bullish ๐ pic.com/PyKk9Aci93
— Bitcoin Magazine (@BitcoinMagazine) January 13, 2025
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This article presents a Take. The views expressed belong solely to the author and do not necessarily represent those of BTC Inc or Bitcoin Magazine.
