US Government Sends Massive Amount of BTC to Coinbase

As a seasoned crypto investor with a decade-long journey under my belt, I’ve learned to take news like this with a grain of salt and a dose of patience. The recent transfer of Silk Road-related Bitcoins to Coinbase doesn’t seem to have stirred the market much, but history has shown us that such events can cause unexpected ripples.


Based on information from Arkham Intelligence’s blockchain analysis, approximately $593.5 million in Bitcoins linked to the Silk Road marketplace have been transferred to the Coinbase digital trading platform.

According to U.Today’s report, the value of Bitcoin temporarily dropped when the U.S. government moved approximately $2 billion of Bitcoin to exchanges. But upon further investigation, it was discovered that this transfer was only for safekeeping, causing the market to react too strongly.

Around early July, the primary U.S. cryptocurrency exchange established a significant collaboration with the U.S. Marshals Service, marking the first time a law enforcement agency in the country had done so. This partnership aimed to facilitate Coinbase Prime safely holding the government’s seized digital assets.

It appears that the latest transaction has no impact on Bitcoin’s price, as it is currently being traded at approximately $59,216.

Among global governments, the United States holds the largest amount of Bitcoin, as reported by Bitcoin Treasuries. A significant part of these Bitcoins originated from Silk Road, an old dark web marketplace. In February 2022, it was announced that a substantial portion of Bitcoins stolen from the Bitfinex exchange in 2016 were recovered by the U.S. government.

In a common occurrence, the U.S. Marshals Service usually puts up for auction the coins they confiscate. Interestingly, in an auction held as far back as July 2014, venture capitalist Tim Draper emerged victorious as the lone winner.

Besides the United States, China and the UK are notable countries with substantial Bitcoin holdings. Notably, Germany was previously listed among them; however, following the sale of all confiscated coins by one of its states (Saxony) earlier this year, Germany is no longer included due to the increased selling pressure on the market.

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2024-08-14 21:52