 
 
El Salvador may be looking to sell its substantial Bitcoin reserve in the open market, as on-chain analysis shows major wallet activity. The Central American country is known to own and operate the world’s first state Bitcoin reserve worth more than $600 million under the leadership of President Nayib Bukele, a BTC maximalist. Is the country actually looking to sell its stash, or is it just Fear, Uncertainty, and Doubt (FUD) being perpetrated in the market?
The country’s official Bitcoin office earlier confirmed that it had moved around the entirety of its BTC stash of around 6,274 BTC ($677 million) to 14 new wallets to help mitigate cyber attacks. Each transaction was reportedly capped at 500 BTC to improve the security of the process.
Where Did the Bitcoin Go?
Here are the 14 wallets in question:
Image Source: MempoolThe move was somewhat unexpected, as previously, the entire BTC reserve was held in a single Bitcoin address. While none of these wallets are known to be associated with cryptocurrency exchanges, the sudden move garnered a lot of social media attention.
Crypto Twitter was especially buzzing with this development, and some critics thought that the excuse given wasn’t convincing enough. One popular analyst tweeted:
 
“When asked why, they claimed they’re “protecting against quantum threats.”That’s laughable, and a terrible lie. If quantum ever cracked Bitcoin, the entire network would be obliterated instantly, no wallet shuffle would save them. It’s a flimsy cover story.
The real play here is obvious: El Salvador is positioning to sell or collateralize. Fresh wallets make it cleaner to deal with OTC desks and exchanges, letting them unload in tranches without drawing as much heat.”
Will El Salvador Sell this Bitcoin to Make a Profit?
El Salvadorian President Nayib Bukele has consistently discussed a big “HODL” game and stated several times that the country will not sell its Bitcoin. He even decided to proceed with the BTC purchases despite being pressured by the International Monetary Fund (IMF) to withdraw this measure. A sudden change of heart doesn’t add up here.
The move to disperse the country’s BTC holdings does make sense, but the lack of intimation by the authorities started a major storm on crypto Twitter, with wild predictions being made. While the excuse of “Quantum threats” is indeed a little sketchy at best, the truth is that the BTC are much safer in a dispersed environment, provided the private keys are stored effectively.
It seems unlikely that El Salvador is going to liquidate its entire BTC holdings, for now.
Source: https://zycrypto.com/is-el-salvador-looking-to-sell-its-massive-bitcoin-stash-heres-the-on-chain-verdict/
