The United States Government has just transferred more than $2 billion worth of Bitcoin (BTC) from the stash it confiscated from the dark web marketplace – Silk Road. This marks one of the biggest Bitcoin transfers from the government in recent times, a move that is rattling the market.
Bitcoin Not Free From Government Selloffs
According to data from Arkham Intelligence, the transfer is linked to the wallet address labeled “U.S. Government: Silk Road DOJ Confiscated Funds (bc1qj).” This wallet moved approximately 29,800 BTC in two tranches.
The first involved the transfer of 27,799 BTC and another worth 0.001 BTC to a different wallet. While on-chain data depicts transparency in fund movements, it becomes immediately unclear the reasons for these transfers. Markedly, this is not the first of such transfer that the US government is conducting this month.
In the first week of July, right when faced a price dip, the US government transferred 237 BTC. worth approximately $14 million at the time. The funds came from the loot originally seized from Sergei Potapenko and Ivan Turogin, two Estonian crypto entrepreneurs in a large-scale crypto fraud
scheme. Before the huge transfer, an initial transfer of 11.84 BTC took place, probably as a test transaction.
Last week, the US government completed another transfer of 60 Bitcoin, worth nearly $4 million. The BTC first went to a wallet address identified as “34tXj..HUXfd” and then moved to Coinbase Prime. Like in the present case, the reason for transfer remains unknown but it has triggered unrest amongst members of the crypto community.
Bitcoin Price Face Downtrend
The US Government chose to make this move weeks after the German Government ended its Bitcoin selloff bid. In Germany’s case, Bitcoin price reeled in losses, declining to as low as $52,000. Market observers and analysts are concerned about the negative impacts continuous selloffs would have on BTC price.
For now, Bitcoin is gradually loosing some of the profit it gained recently following the numerous BTC offloads. Bitcoin
jumped for a few moment over $70,000 but has now returned to a lower level. At press time, BTC Price traded at $66,984.95 corresponding with a 1.06% drop within the last 24 hours.
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