US Government Transfers $240 Million in Bitcoin to Coinbase: Potential for Another Market Decline?
The transfer of 3,940 BTC ($240 million) by a known federal wallet address to Coinbase Prime has raised eyebrows within the crypto community. The move, picked up by blockchain analysts, occurred at 1 pm ET with a mere $18 in fees.
Opinions on the source of the government’s Bitcoin varied. ZachXBT’s Telegram channel suggested that the funds were part of the Bitcoin seized from the “Silk Road hack.” Following the shutdown of the darknet marketplace in 2013, the Justice Department confiscated 50,676 BTC from the hacker, selling it off gradually since then.
However, Arkham Intelligence revealed that the BTC transferred recently actually originated from narcotics trafficker Banmeet Singh. Singh, who pleaded guilty to running an international narcotics ring, agreed to forfeit $150 million worth of crypto as part of his plea deal earlier this year.
The U.S. government still holds a substantial $13 billion in BTC, making it one of the largest Bitcoin owners globally, alongside companies like MicroStrategy. Germany also recently sold a portion of its $2.8 billion Bitcoin stash, showcasing a trend of governments offloading their crypto holdings.
These government sales, along with sell-offs by Bitcoin miners and whales, have contributed to downward pressure on Bitcoin prices this month. On-chain analysis indicates a decrease in new demand for Bitcoin, with the current price at $60,775, down 13% for the month.
The U.S. government’s actions highlight the evolving landscape of Bitcoin ownership and the impact of government sales on the crypto market. It remains to be seen how these developments will influence the broader crypto ecosystem in the future.
