Bitcoin (BTC) and the broader crypto market are at risk of a further downtrend following a recent development involving the US and German governments. On-chain data suggests that both governments are looking to offload a substantial amount of their BTC holdings. 

US Government Send $240 Million In Bitcoin To Coinbase Prime

On-chain analytics platform Arkham Intelligence revealed in an X (formerly Twitter) post that the US government had sent 3,940 BTC ($240 million) to Coinbase Prime. This has raised fears that the government may be looking to offload these crypto tokens, which would exert more selling pressure on the flagship crypto. 

Arkham also revealed that this BTC formed part of the seizure from narcotics trafficker Banmeet Singh following his trial earlier this year. Interestingly, Singh is known to have sold drugs through the Silk Road marketplace, a dark web platform which the US government is known to have seized a substantial amount of Bitcoin from. 

The US government has, in the past, offloaded some of the Silk Road BTC, which also led to significant selling pressure for the flagship crypto. Their last confirmed sale came in March when they offloaded 9,861 BTC ($216 million). They have yet to confirm the sale of the 3,940 BTC moved to Coinbase, which suggests it has yet to be sold. 

Meanwhile, the US government isn’t the only one looking to dump on the market. Data from Arkham Intelligence shows that the German government recently transferred 125 BTC ($7.71 million) each to crypto exchanges Kraken and Bitstamp. This follows their recent transfer of 400 BTC ($24 million) to Kraken and Coinbase. Meanwhile, the German government also moved 1,000 BTC to an unknown address (139Po), which could be another crypto exchange. 

The potential Bitcoin sale from the US and German governments is more worrisome, considering that Bitcoin is already facing massive selling pressure as it is. Bitcoinist recently reported that BTC miners have sold 30,000 BTC ($2 billion) this month alone, greatly contributing to the crypto’s massive decline since the month began. 

Another Government Chooses To Hold

While the US and Governments continue to offload their Bitcoin holdings, another government, El Salvador, has instead chosen to keep accumulating the flagship crypto. El Salvador is known to have adopted Bitcoin as a legal tender since September 2021 and initiated a ‘1 Bitcoin a day program’ in November 2022, whereby they purchase 1 BTC every day.  

Data from Arkham Intelligence shows that they have stuck to this policy and currently hold 5,794 BTC ($351.82 million). El Salvador has also continued to accumulate through foreign investments and its mining operations. Bitcoinist recently reported the government’s plans to create a Bitcoin bank to lure foreign investors with frictionless Bitcoin investment. 

Featured image created with Dall.E, chart from Tradingview.com

As the presidential election nears, industry leaders are closely observing how the candidates, Joe Biden and Donald Trump, may impact Bitcoin and the broader crypto market.

The stakes are heightened by their upcoming historic debate on CNN, which could significantly set the stage for what comes next.

SEC’s Regulatory Agenda

Ripple CEO Brad Garlinghouse has criticized SEC Chairman Gary Gensler’s aggressive stance on crypto regulation. He argues that Gensler’s failure to address issues like FTX and Binance undermines his credibility.

“Absolute nonsense coming from Gary Gensler today. And this slander about ‘all crypto execs going to jail’ from the man who completely missed FTX (and actually cozied up to SBF), and wasn’t even invited to the DOJ announcement about Binance,” Garlinghouse said.

Garlinghouse also criticized Gensler for misrepresenting the American people’s interests. Therefore, the SEC Chair should have have been removed from his position long ago. He went even further to suggest that Gensler’s actions could jeopardize Biden’s chances in the upcoming election.

Mark Cuban shares a similar sentiment, emphasizing that regulatory challenges in the US are stifling the crypto industry. He contrasts this with more favorable environments like Singapore and Japan.

Like Garlinghouse, Cuban believes Gensler’s actions could alienate younger voters heavily invested in crypto.

“If he has a political career in mind, he’s done, and he literally could cost Joe Biden the election because there are a whole lot of Gen Z, Gen X, millennials that own a whole lot of crypto, and by not making it easy to register, it makes it easier for all the scam coins to exist,” Cuban emphasized.

Who’s Better for Bitcoin?

Despite the sentiment that Gensler’s regulatory approach to the crypto market has generated, choosing between Trump and Biden for Bitcoin involves evaluating their policies. Trump has always been known for his enthusiastic support of Bitcoin and the blockchain space. Meanwhile, Biden’s stricter regulations ensure market stability and security, but may stifle innovation.

Niel Roarty, analyst at Stocklytics, told BeInCrypto the general consensus in the industry leans more towards Trump due to his vocal support for Bitcoin.

“The consensus among the crypto community seems to be that a Trump victory would be favorable for the industry. Aside from the vocal support he’s given, Bitcoin has tended to perform well during periods of political and economic uncertainty, and a second Trump presidency will likely see more of both,” Roarty noted.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

On the other hand, Max Jones, Founder of Memepad, told BeInCrypto about the influence of presidential meme coins in the election. He believes that meme coins reflect public sentiment towards political figures and demonstrate how cryptocurrency is intertwining with politics.

“Trump-based memecoins like MAGA, MAGA Hat, Doland Tremp, Super Trump, MAGA VP, and Trump Mania are leading the trend. Over the past 24 hours, these tokens have soared by over 19% each. The high posturing to Trump might take precedence in his crypto-focused campaign… President Joe Biden also has dedicated meme coin projects that are tied to him. Of the Biden-themed tokens, Jeo Boden, with a 5.1% surge to $0.1549 in 24 hours, is the most valuable,” Jones added.

As the campaign heats up, Jones believes these meme coins could act as a measure of popularity for the candidates. Their volatility is influenced by the hype surrounding the politicians they represent, but their growth also reflects broader market trends.

While it is uncertain which meme coins will endure, they currently provide an unusual gauge for Trump and Biden. Roarty maintains that the upcoming presidential debate between Biden and Trump may impact these meme coins.

“Biden does hold the edge when it comes to presidential meme coins, however, which are created and traded by crypto enthusiasts although not endorsed by the candidates themselves. The BODEN coin, modelled after the president, currently holds a market capitalization of $107 million, compared to the $82 million of TREMP,” Roarty shared.

In a related discussion, Anthony Pompliano recently talked about how stablecoins could help address the US debt crisis by providing steady demand for treasuries. This perspective ties into the broader debate on crypto policies between Biden and Trump.

Trump’s pro-Bitcoin stance suggests a favorable environment for stablecoins to aid in debt management. On the other hand, Biden’s regulatory approach and exploration of a CBDC could impact stablecoin utilization.

The upcoming presidential election could play a crucial role in shaping the future regulatory environment for cryptocurrencies in the US. Indeed, the outcome will greatly affect the industry’s growth and stability.

Nubank, a prominent Brazilian neobank, recently announced the integration of Bitcoin’s layer-2 (L2) Lightning Network.

This initiative aims to enhance transaction speed, reduce costs, and improve scalability for its users.

Nubank Partners with Lightspark to Enhance User Experience through Lightning Network

The move is part of a strategic partnership with Lightspark, a company renowned for its blockchain solutions. Integrating with Lightspark’s tools will optimize transaction success rates and liquidity requirements. This provides Nubank with powerful tools to enhance end-to-end transaction experiences via blockchain.

By incorporating the Lightning Network, Nubank enables its customers to conduct everyday payments, transfers, and international purchases with Bitcoin (BTC). This development aligns with Nubank’s continuous efforts to innovate and improve its digital banking services. Thomaz Fortes, Executive Director of Nubank Cripto, emphasized the institution’s focus on efficient customer solutions.

Read more: Beginner’s Tutorial to Start Using the Lightning Network

“The future integration of Lightning Network underscores Nu’s ongoing mission to offer more efficient services with greater speed and lower costs through blockchain technology,” Fortes added.

Echoing Fortes’ sentiment, David Marcus, CEO and co-founder of Lightspark, also expressed his excitement about their part in introducing Lightning Network to Nu’s 100 million customers.

“We’re delighted to enable Nubank to keep evolving their crypto solutions,” Marcus stated.

In addition to the Lightning Network, the partnership with Lightspark will introduce Universal Money Addresses (UMAs), which function like email addresses for sending money. This feature simplifies financial transactions for Nubank’s users. While specific product details remain undisclosed, Nubank promises further announcements in the near future.

Nubank’s latest crypto-related expansions align with the current market in Brazil. According to a report from research firm Kaiko, the Brazilian crypto market has experienced substantial growth this year.

Read more: The Best Bitcoin Lightning Network Wallets In 2024

Brazilian real-denominated crypto trading volumes reached $6 billion from January to early May 2024. This growth positions Brazil as a leading player in the Latin American crypto market and highlights the increasing interest in stablecoins, Bitcoin, and other cryptocurrencies.