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