Fun

US gov’t $590M Silk Road Bitcoin transfer to Coinbase unlikely to be sold — Analyst

News Feed - 2024-08-15 08:08:18

Zoltan Vardai12 hours agoUS gov’t $590M Silk Road Bitcoin transfer to Coinbase unlikely to be sold — AnalystThe government could also be looking to custody or trade the Bitcoin, based on a recent partnership with Coinbase Prime.2376 Total views17 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onThe United States government has transferred nearly $600 million worth of Bitcoin to Coinbase, but it is unlikely to transform into selling pressure.


The US government transferred 10,000 Bitcoin (BTC) worth over $593 million on Aug. 15, as reported by Cointelegraph.


The Bitcoin was sent to a Coinbase Prime deposit wallet, according to onchain analytics firm Arkham Intelligence.US government wallet, fund flows. Source: Arkham Intelligence


Despite the initial concerns, the Bitcoin is unlikely to be sold, according to Ryan Lee, chief analyst of Bitget Research. Lee told Cointelegraph:“This does not mean that 10,000 Bitcoin have already been sold. Last month, the US Marshals Service, an agency under the US Department of Justice, announced a partnership with Coinbase Prime to ‘safeguard and trade’ large digital assets.”


Whales (large Bitcoin holding entities) can have a significant impact on Bitcoin’s price. Investors often follow the transactions of large holders to gauge potential incoming selling pressure. 


Related:Bitcoin’s bull rally will continue another 350 days: BybitUS government transfer could be for trading or custody


August’s agreement between Coinbase and the US Department of Justice (DOJ) could signal an intention to trade large market cap cryptocurrencies like Bitcoin.


However, the government may have simply transferred the assets for safe custody, not active trading, explained Lee:“After all, Coinbase is the primary custodian for US ETFs, and it is a possibility that the US government entrusted the BTC to Coinbase for safekeeping.”


Moreover, a nearly $600-million sale is unlikely since it would have a drastic impact on Bitcoin due to the current market liquidity, added Lee:“Based on the current price performance, while there is a possibility of it being sold in the market, it is not very likely.”


Related:Bitcoin sell pressure may break $56K support as options expiry loomsWhere did the US government obtain the 10,000 BTC?


The US is currently the largest geopolitical Bitcoin holder, a point recently highlighted by presidential candidate Donald Trump. If elected, he promised not to sell any of the US government’s Bitcoin holdings.


The recently transferred 10,000 Bitcoin was originally seized during the Silk Road raid back in 2022 when the DOJ announced seizing 50,000 BTC from the dark net marketplace.


At the beginning of April, the US government transferred $2 billion worth of Bitcoin seized from Silk Road in the first significant onchain movement of the funds since their seizure.


The Silk Road marketplace, defunct for more than 10 years, allowed users to buy and sell illicit goods, including weapons, drugs and stolen credit card information.


US authorities arrested its creator, Ross Ulbricht, in 2013. He is serving two life sentences without the possibility of parole.


Magazine:How Chinese traders and miners get around China’s crypto ban# Bitcoin# Silk Road# Business# Government# Bitcoin Price# Adoption# US Government# WhaleAdd reaction

News Feed

Bitcoin Crashes, Fear Spikes—But This Analyst Sees $153,000 Ahead
Este artículo también está disponible en español. In his latest video update, long-time market analyst and self-described “four-year cycle” trader Bob Loukas delivere
3 FTX Execs Have Snitched on SBF, Now Scrutiny Is Aimed at Nishad Singh and Ramnik Arora
3 FTX Execs Have Snitched on SBF, Now Scrutiny Is Aimed at Nishad Singh and Ramnik Arora On Dec. 21, U.S. law enforcement officials from the Southern District of New York (SDNY), t
William Suberg9 hours agoBitcoin bulls battle to reclaim $30K amid BTC price RSI ‘reset’Bitcoin returns to a tug-of-war over $30,000, with BTC price action costing its RSI weeks of upside.3392 Total views39 Total sha
Russia’s Central Bank Slashes Benchmark Rate, Pegs RUB to Gold — Ruble Rebounds to Pre-War Levels
Russia"s Central Bank Slashes Benchmark Rate, Pegs RUB to Gold — Ruble Rebounds to Pre-War Levels Amid the Ukraine-Russia conflict, the Russian ruble has managed to rebound despi
XRP Upswing Not Far Off As Open Interest Sways–Details
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Telegram Refutes All SEC Allegations, Asks Court to Dismiss in New Filing
Messaging app firm Telegram has made a new plea to a U.S. court to drop an action brought by the Securities and Exchange Commission (SEC) alleging its yet-to-be launched token is a security.
Binance Warns Crypto Investors of ‘Massive Phishing Scam via SMS’
Binance Warns Crypto Investors of "Massive Phishing Scam via SMS" Cryptocurrency exchange Binance has warned investors of a “massive phishing scam via SMS.” The scamm
Central African Republic President Says Successful Launch of Sango Coin a Key Milestone
Central African Republic President Says Successful Launch of Sango Coin a Key Milestone According to Central African Republic President Faustin-Archange Touadéra, his country&
Full decentralization will happen in a few years — Layer-2 rollup teams
Christopher Roark10 hours agoFull decentralization will happen in a few years — Layer-2 rollup teamsSeveral layer-2 rollup teams, including those for Linea, zkSync, Arbitrum and Optimism, claimed that full decentraliza
Bitcoin Price Above $100,000 Again? Why $99,800 Is An Important Resistance To Break
Este artículo también está disponible en español. The Bitcoin price is approaching the $100,000 level again after experiencing significant declinesthese past weeks. A cry
Tron Bulls Regain Control – On-Chain Data Shows Fresh Buying Pressure
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Wyoming passes law granting DAOs legal status
Ana Paula Pereira2 hours agoWyoming passes law granting DAOs legal statusThe new regulation enables decentralized autonomous organizations to establish contracts with third parties, open bank accounts, and pay taxes, alo