Government Bitcoin sales have become infamous in the crypto community, especially after the German government sold nearly 50,000 BTC seized from the piracy platform Movie2k. This sale, which lasted 23 days, caused Bitcoin's price to drop 17% between mid-June and mid-July.
Following Germany's actions, the U.S. government has also started moving Bitcoin more frequently. According to Lookonchain, the U.S. government recently transferred 10,000 BTC, worth approximately $594 million, seized from Silk Road to Coinbase Prime.
U.S. Government Move 10K BTC
The US government recently moved 10,000 Bitcoin, worth about $590 million, from one of its wallets to a Coinbase Prime account. This action led to a 3.3% drop in Bitcoin's price, bringing it below the important $60,000 mark to around $58,330.
However, it's important to understand that just because the government moved Bitcoin to Coinbase, it doesn't necessarily indicate an immediate sell-off.
Perhaps, this isn't the first time the U.S. government has moved such a large amount of bitcoins. Just two weeks earlier, in July, the government transferred $2 billion worth of Bitcoin, with Coinbase likely being the recipient.
Meanwhile, the US government currently holds 203,239 Bitcoin, valued at around $12.05 billion, making this transfer a big deal in the crypto world. These assets were largely acquired through seizures, including from the infamous Silk Road marketplace
Market Reactions & Speculations
The transfer to Coinbase Prime has already begun to stir discussions among traders and analysts. Some believe that the government might be preparing to liquidate a portion of its holdings, which could introduce significant selling pressure on Bitcoin, potentially leading to a drop in price.
Others speculate that this move could be related to institutional investment strategies, given Coinbase Prime's role as a platform for professional and institutional traders.
