Approximately $2 billion worth of seized Bitcoin (from Silk Road) have been transferred by the US government to a Coinbase wallet.
The Specter of Federal Selling Pressure on BTC
On-chain research firm Arkham Intelligence recently reported unusual activity involving Bitcoin funds held by the US government. These are the infamous BTC seized in 2014 from Silk Road, the notorious dark web platform shut down by US federal authorities due to its role in facilitating numerous illegal activities.
According to reports, 19,800 BTC, equivalent to $1.92 billion, were transferred to a Coinbase account, likely as part of a gradual process to sell these funds on the market.
Some of these funds also include a portion seized from James Zhong, who in 2012 managed to steal 50,676 Bitcoin by manipulating transactions on the marketplace. Federal authorities confiscated this stash in 2022 and have now moved it to Coinbase in recent days.
The enormous amount of BTC poised to hit the market has understandably concerned investors, who reacted to the news by causing a slight correction in BTC prices during the day.
BTC's Reaction
Even the mere possibility of such a large amount being dumped on the market triggers increased selling pressure from investors. Although, in this case, the sale might not be immediate and involves Coinbase’s involvement.
Silk Road founder Ross Ulbricht remains in prison, but the newly elected US president has promised during the campaign to release him upon taking office. This has earned Donald Trump favor within the crypto community for a completely renewed approach to the sector compared to the past. However, it remains highly likely that the funds in question will indeed be sold, which could dampen the bullish momentum BTC has experienced in recent weeks.
By Gue22 🌐🚀 What do you think?
Let's see if Trump releases Ross and increase the BTC stash of US goverment instead of selling it.