The United States (US) government recently transferred as many as 10,000 bitcoins (BTC) confiscated Silk Roadinfamous online black market platform. For years, the government has made many large-scale Bitcoin transfersstrategically transferring these assets to up-to-date wallets or other exchanges.
US government moves 10,000 BTC to Coinbase Prime
WX (formerly Twitter) fasting On August 14, Arkham Intelligence, a blockchain analytics platform, discovered a up-to-date Bitcoin transfer by the U.S. government. According to Arkham’s reports, the government transferred 10,000 BTC worth $593.5 million from its cache of assets seized during abolition of Silk Road.
This mass transfer of bitcoins successfully captured the attention of the cryptocurrency community, causing speculation about the destination and the potential impact on an already struggling market.
In November 2021, the U.S. government over 50,000 BTC confiscated from the Silk Road Murky web marketplace. At the time, the total value of confiscated Bitcoins was approximately $3.36 billion.
Arkham Intelligence revealed that a wallet address, bc1ql, received 10,000 Silk Road BTC from a crypto wallet that was allegedly linked to the US government. This significant BTC was then routed to 33J, Prine’s Coinbase custodial wallet.
Given the immense amount of BTC involved in the recent government transfer, many in the cryptocurrency community questioned Whether the government intends to sell BitcoinThe potential sale could have a drastic impact on the cryptocurrency market, which is still on the rise major outages in Bitcoin, Ethereum and other leading cryptocurrencies.
Although cryptocurrency exchange deposits often suggest an intent to sell crypto assets, in this case the government may have moved 10,000 BTC for escrow reasons. To provide more context, on July 1, the U.S. Marshals Service, a division of the U.S. Department of Justice (DOJ) Coinbase Prime selected as a partner providing custody and advanced trading services for large-cap digital assets.
Bitcoin Price Falls Below $59,000
Following the news of the US government’s large-scale transfer of BTC to Silk Road, the price of Bitcoin has fallen significantly. According to CoinMarketCap data, Bitcoin is currently trading sideways, falling below the $59,000 level.
Over the past few weeks, the price of bitcoin has been at a significant level downward trendexperiencing immense price swings while trying to maintain position over $60,000At one point, the cryptocurrency fell by more than 20%, mainly due to widespread liquidations and mass whale sales and German government.
WITH speculation Due to a potential US government sell-off of BTC, Bitcoin price could face increased volatility and further declines. At the time of writing, the cryptocurrency is trading at $58,321, down a significant 4.11% in the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
