The United States government sent over $240 million worth of seized Bitcoin to a Coinbase Prime address, raising concerns among traders that the digital assets would be sold.
As per the data from Arkham Intelligence, the wallet shifted 3,940 bitcoins that were first confiscated from a Silk Road merchant. This Bitcoin was originally seized from drugs trafficker Banmeet Singh and forfeited at trial in January 2024.
Update: US Government Sends $240M BTC to Coinbase Prime
The US Government just moved 3,940 BTC ($240M) to Coinbase Prime.
This BTC was originally seized from narcotics trafficker Banmeet Singh, and forfeited at trial in January 2024.
Transaction: https://t.co/hZ1CwqWCmF pic.twitter.com/9t6k8Wdizq
— Arkham (@arkham) June 26, 2024This transfer came after the US government seized over 50,000 Bitcoin tied to the Silk Road website, with the most recent large shift being $2 billion in Bitcoin in April 2022, which had a similar impact on digital markets. The government’s last recorded sale of 9,861 coins for nearly $215 million was in March 2023.
Fear of Government sell-off
Following rumors that the German government was liquidating its Bitcoin holdings, which were estimated to be worth $2.76 billion at the time of writing, market players have become fearful that government sell-offs will negatively affect the Bitcoin market in recent weeks.
The most recent of these transactions from the German government occurred on June 26, 2024, and featured an output of 345 Bitcoin sent to a wallet labeled “Flow Traders.”
The United States government also holds large quantities of Bitcoin acquired through seizures and asset forfeiture. it roughly owns 214,000 bitcoins worth $13 million at fair market value.
Investor concerns of a Bitcoin price drop have also been heightened by selling pressure from the Mt. Gox bankruptcy estate, as the former exchange starts the process of dumping 140,000 Bitcoin to compensate those hurt in the infamous 2014 Mt. Gox collapse. Exchange balances, which serve as a price-stabilizing counterbalance to these selling impulses, are, nevertheless, at 6-year lows.
Also Read: Road to Nowhere: The Silk Road Phoenix that continues to rise
