The US government moved 30,175 BTC, worth almost $2 billion at the time, to a Coinbase-linked wallet on April 2. This transfer takes place during a substantial decrease in the price of Bitcoin, with $64,500 as the weekly low. The cost of the cryptocurrency was, however, supported above $65,000 a little afterward. This transfer was brought to the attention of the crypto community by on-chain detective ZachXBT, who was one of the first to highlight this transfer on social media and consider it a big event in the crypto world.
The large-scale transaction represents government smugness, starting with a test transfer of 0.001 BTC ($69) to the stated Coinbase address. The transaction hash and the Coinbase deposit address were made public, which is reflective of the openness of the transactions. The decision has attracted attention and a lot of guessing within the cryptocurrency community, leaving uncertainty about the plans that the government has for the digital assets it holds.
Silk Road Bitcoins Moved to Coinbase Wallet
After the announcement, the value of Bitcoin dropped, but it was just a small drop since it went below 65,000 dollars and shortly after started to recover. The cryptocurrency is now valued at $65,200 or 4.7% down over the past 24 hours. This movement captures the wide market bear. The Bitcoins in question are part of a group that was confiscated in late 2022 and are linked to the infamous Silk Road marketplace, which was closed down by the FBI in 2013.
The recipient wallet was highlighted by blockchain analysis firm Arkham Intelligence as belonging to Coinbase, indicating a possible government-backed move to sell or exchange the confiscated bitcoins. The government’s significant offer to the public happened in March 2023 when 9,861 BTC went under the hammer, and they were valued at close to $216 million. The transfer of the Bitcoins has brought attention to the crypto community, which is waiting in anticipation of what this event would lead to, trying to figure out the US government’s game plan for its remaining Bitcoin.
US Government Moves Stir Digital Asset Market
The recent transfer has raised discussions about the control and disposal of seized digital assets. This action has a high capacity to affect the stock market with respect to digital assets drastically. The US government’s filing prior to this to sell close to $130 million worth of seized BTC in January adds some more mystery, though it is yet to be confirmed.
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