Senator Cynthia Lummis raises concerns over the recent BTC sell-off by the US government, deviating from the intended strategy outlined in the BITCOIN Act. This sudden sale by the DOJ could jeopardize the establishment of the long-awaited strategic reserve.
It’s news that hit the crypto community like a cold shower. While investors expected the United States to adopt an institutional HODL position, the Department of Justice (DOJ) proceeded with the sale of seized Bitcoin, including those linked to the Samourai Wallet founders case.
For Republican Senator Cynthia Lummis, a fervent advocate of the ecosystem, this action is economic nonsense. She emphasizes that these assets, instead of being liquidated for immediate profit, should be integrated into the strategic Bitcoin reserve proposed by her bill, the BITCOIN Act. This liquidation comes as the market attempts to maintain its bullish structure despite macroeconomic uncertainties.
Lummis insists that these seized funds represent a unique opportunity for the U.S. Treasury to strengthen its balance sheet at no additional cost to taxpayers. By selling now, the government is foregoing potential future appreciation, a move deemed bearish by analysts monitoring government wallets.
The senator’s reaction was swift. She believes that transferring these BTC to sales platforms or auctions goes against national interests. According to her, an executive order or strict enforcement of the BITCOIN Act should prevent the DOJ from dumping these coins on the market.
The argument is simple: Bitcoin is a store of value asset, comparable to gold. By disposing of these assets, the United States weakens its position against other nations quietly accumulating BTC. Lummis advocates for every seized satoshi to be locked in government cold storage, transforming a judicial seizure into a long-term financial asset.
This divergence between the legislative branch (Lummis) and the executive/judicial branch (DOJ) creates uncertainty for investors. If the government continues selling, it could create artificial selling pressure, slowing the race toward a new ATH.
The crypto market remains extremely sensitive to whale movements, and the U.S. government is one of the world’s largest whales. If this sale remains isolated, the market could absorb it without entering a bearish trend. However, if the DOJ decides to liquidate all of its seized holdings, we could witness a retracement and panic phase. Despite this, Bitcoin has reacted very well to the news and is holding above $93,000.
This represents a new bullish signal for Bitcoin, which would likely have crashed sharply just a few weeks ago with this kind of news.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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