Bitcoin Drops as U.S. Transfers $240M in Bitcoin

YEREVAN ( — Bitcoin’s price took a hit on Wednesday after the U.S. government transferred approximately $240 million worth of seized BTC to a Coinbase Prime address. This move has sparked fears among traders about a potential sale of the digital assets.

$240M in Seized Bitcoin Transferred to Coinbase

The U.S. government moved about 3,940 Bitcoin, originally seized from a Silk Road vendor. These assets were confiscated from narcotics trafficker Banmeet Singh and forfeited at his trial in January 2024. According to Arkham Intelligence, this transfer has raised concerns among traders that the assets might soon be sold.

Government Moves Seized Bitcoin Worth $240M to Coinbase Prime - Source: @ArkhamIntel
Government Moves Seized Bitcoin Worth $240M to Coinbase Prime. Source: @ArkhamIntel

Traders are wary of the impact of such a sale on the market, given the substantial amount involved. The last government sale in March 2023 saw 9,861 coins unloaded for $216 million, which put considerable pressure on the market at the time.

Government Actions and Their Impact on the Market

This isn’t the first time government actions have influenced the Bitcoin market. In late 2022, the government seized roughly 50,000 BTC linked to the Silk Road website. A significant move occurred on April 2, 2023, when $2 billion worth of Bitcoin was transferred, causing a notable dip in digital markets.

These historical events provide context for the current market reactions. The fear of a government sale often triggers a sell-off among traders, leading to price drops. The government’s recent movement of seized assets continues to create ripples in the cryptocurrency market.

Bitcoin and Ether Prices Drop After Government Bitcoin Transfer

Following the news of the transfer, Bitcoin attempted a modest bounce from its earlier tumble related to Mt. Gox. However, the price slipped back below $61,000 as the news spread. It has since edged back to $61,100, reflecting a 1% decrease over the past 24 hours. The broader CoinDesk 20 Index mirrored this decline, also dropping by about 1%.

CoinDesk 20 Index Dips Slightly on June 26, 2024 - Source: CoinDesk
CoinDesk 20 Index Dips Slightly on June 26, 2024. Source: CoinDesk

Ether (ETH), another major cryptocurrency, was not immune to the news. It fell by 1.6% on the day, showcasing the broader impact of the government’s actions on the digital asset market.

Ethereum Price Fluctuates as SEC Closes ETH 2.0 Investigation - Source: CoinMarketCap
Ethereum Price Fluctuates as SEC Closes ETH 2.0 Investigation. Source: CoinMarketCap

The post Bitcoin Drops as U.S. Transfers $240M in Seized Silk Road Bitcoin appeared first on CoinChapter.