In a move that has sent ripples through the cryptocurrency market, the U.S. government has transferred a substantial amount of Bitcoin seized from the notorious Silk Road, sparking discussions and concerns over potential selling pressure.
This article delves into the details of the transfer and its implications for the market, shedding light on the government's vast cryptocurrency holdings and their strategic moves within the digital currency space.
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U.S. Government's Transfer of 2,000 BTC Raises Concerns
It has come to light that the U.S. government transferred approximately $132 million worth of Bitcoin (BTC), previously seized in connection with the Silk Road, to another wallet. This revelation has heightened concerns over potential selling pressure within the cryptocurrency industry.
The Silk Road was an online black market operating from 2011 to 2013, where transactions for various illegal goods, including drugs, malware, pirated content, and credit card information, were conducted in Bitcoin.
The Bitcoins that were transferred are related to those seized in connection with the Silk Road. It was reported that after sending a test transfer of 0.001 BTC, an additional 2,000 BTC were transferred to a Coinbase Prime wallet.
The U.S. Government's Vast Cryptocurrency Holdings
The U.S. government is known to hold a significant amount of cryptocurrencies, seized in relation to various incidents. According to data published by Arkham, as of April 3, 2024, the government held 21,324 BTC.
The government had previously sold a portion of the Bitcoin seized in relation to the Silk Road in 2023, and it was reported that it planned to sell the remaining BTC in multiple transactions.
Given that the recipient of this latest Bitcoin transfer, Coinbase Prime, is a platform that offers cryptocurrency trading and other services to institutional investors, the cryptocurrency industry is wary of the potential impact on prices due to Bitcoin sales.
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