ARTICLE AD BOX
Recent blockchain data has shed light on potential additional sales of Bitcoin (BTC) by the United States government, raising concerns about increased sell pressure on the cryptocurrency market. This development, combined with reports of government-controlled Bitcoin tied to the Silk Road being transferred to Coinbase, has sparked speculation about the government’s motives and the impact on market dynamics.
According to on-chain analyst ZachXBT, a transaction originating from government-controlled Bitcoin linked to the Silk Road was initiated towards Coinbase, a prominent cryptocurrency exchange previously utilized by the government for its coin sales.
30.1K BTC ($2.1B) of Silk Road hack funds controlled by US government is on the move right now.
0.001 BTC ($69) transferred to a Coinbase deposit address so it’s a test transfer possibly.
txn hash
9c3af4b48e66565f1da1da8278036fa1dbb09f2beaaca99c3504475390ba4590
Coinbase…
— ZachXBT (@zachxbt) April 2, 2024
Subsequently, a significant transfer of 1999 BTC, valued at approximately $139 million at the time, was made to Coinbase Prime.
As a result of these transactions, the government’s primary address holding Silk Road-associated Bitcoin now contains 29,799 BTC, valued at a staggering $1.96 billion. This revelation comes after the government seized over 50,000 BTC associated with the Silk Road marketplace from hacker James Zhong in late 2021.
The US government has been gradually selling these seized coins, with the most recent sale occurring in July 2023, involving 9,000 BTC. Surprisingly, the government’s previous sales have had minimal visible impact on Bitcoin’s price movements. In fact, the first sale of 9,861 BTC in March 2023 preceded a 25% surge in Bitcoin’s price, occurring before the Department of Justice could officially announce the sale.
However, the recent series of transactions and the potential for further government sales have raised concerns within the cryptocurrency community. Speculation abounds regarding the government’s intentions and whether these sales could exert significant downward pressure on Bitcoin’s price.
Moreover, the timing of such transactions has fueled speculation about insider trading. The sudden drop in Bitcoin’s price from $70,000 to $66,000 preceding the Silk Road wallet movement raises questions about the possibility of privileged individuals exploiting inside information for financial gain.
The US government LOVE to ACT DUMB and play COMPLEX GAMES.
They pretend they don’t know what’s going on half the time,
And have no understanding of what crypto is.
Yeah bro,
12 year olds can understand crypto but our BOOMER government struggles?
BULLSHIT.
-> US gov…
— ً (@trading_axe) April 2, 2024
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