Bitcoin’s price took a hit, dropping back towards $60,000 as news broke that a wallet linked to the U.S. Government transferred around $240 million worth of seized BTC to a Coinbase Prime address. This move raised concerns among traders that the digital assets may be sold off in the near future. The wallet in question moved 3,940 bitcoin that were originally seized from a Silk Road vendor, as reported by Arkham Intelligence on social media. The post mentioned that this particular BTC was seized from narcotics trafficker Banmeet Singh and forfeited during a trial in January 2024.
This is not the first time the U.S. Government has been involved in moving large amounts of bitcoin. In late 2022, they seized approximately 50,000 bitcoin related to the Silk Road website and made a transfer of $2 billion worth of bitcoin on April 2. This previous transfer also had an impact on the digital markets. The government’s last confirmed sale was in March 2023, when they sold 9,861 coins for $216 million.
Following the news of the recent transfer, bitcoin attempted to bounce back from its Mt. Gox-related decline earlier in the week but ultimately slipped below $61,000. It has since recovered slightly to $61,100, marking a 1% decrease over the past 24 hours. The broader CoinDesk 20 Index also experienced a similar drop, while Ether (ETH) fell by 1.6% in response to the news.
It is important to note that CoinDesk, the source of this information, is a reputable media outlet that focuses on covering the cryptocurrency industry. Their journalists adhere to strict editorial policies to ensure accuracy and transparency in their reporting. In November 2023, CoinDesk was acquired by the Bullish group, the owner of Bullish, a regulated digital assets exchange. The Bullish group, majority-owned by Block.one, has various interests in blockchain and digital asset businesses, as well as significant holdings of digital assets like bitcoin. CoinDesk continues to operate independently with an editorial committee safeguarding journalistic independence. Additionally, CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.
Overall, the recent movement of seized bitcoin by the U.S. Government to a Coinbase Prime address has sparked concerns among traders and investors in the cryptocurrency market. The potential impact of these transfers on the market remains to be seen, but it is clear that such large-scale movements of digital assets can have significant effects on prices and market sentiment.