A cryptocurrency wallet known to be linked to the U.S. government sent a large number of Bitcoin (BTC) to Coinbase Prime wallets, according to data from Arkham Intelligence, an on-chain analytics platform. This wallet currently holds 30.175 Bitcoin, equivalent to approximately $2 billion.
The latest moves came in a bear market, with Bitcoin falling to $65,000, and it looks like BTC could go much lower. With a massive pumping station in early 2024, BTC could be in a position to fall into the $50,000 trading range for some time.
As reported, according to renowned cryptocurrency sleuth Zach I did.
https://x.com/zachxbt/status/1775193016363356238?s=20
USD has BTC!
The Bitcoin holdings are believed to be part of the 50,000 BTC seized by US authorities from James Zhong, who attacked Silk Road and stole the assets. Silk Road is a now-defunct online marketplace operating on the dark web. It started in 2011 and was shut down by the FBI in 2013.
This is the latest trend related to the wallet address storing the Bitcoin confiscated by the US government in the Silk Road incident. This follows the sale of 9,861 BTC in March 2023 for $216 million. However, this new measure contradicts previous plans to liquidate only 2,934 BTC seized from the Silk Road black market.
The U.S. government took similar action last month, transferring 15,000 BTC seized from the Bitfinex exchange exploit to a new wallet for testing purposes and then moving the remaining funds.
The Silk Road market witnessed both the good and bad sides of early Bitcoin development. It was also one of the first platforms to adopt Bitcoin as a payment method. However, this level of anonymity and mismanagement makes it a prone place for illegal activity.
In two and a half years, Silk Road facilitated transactions of over 9.9 million BTC, worth approximately $500 billion, before being shut down by the FBI. The legacy of the Silk Road continues to be felt today. In the latest action, the U.S. Department of Justice seized about $1 billion worth of Bitcoin from the world’s fourth-largest Bitcoin wallet, which it claimed belonged to Silk Road.
Despite recently selling the Bitcoin it seized in the Silk Road incident, the U.S. government remains a major holder of the cryptocurrency. They hold over 207,000 BTC worth up to $13 billion, primarily through evidence collected during cryptocurrency-related crime suppression operations over the past decade. This includes 94,600 BTC worth over $6 billion seized in the Bitfinex hack.
Other countries known to have Bitcoin include El Salvador, Germany, Ukraine, Bhutan, Venezuela, and Finland. China is also one of the BTC holders, with 195,000 BTC reportedly seized in the Plus Token scam in 2020.
Uncertain U.S. government actions trigger Bitcoin price decline
This move by the government comes amid a market correction. Bitcoin fell below $65,000 after the news broke, according to data from CoinGecko. As of this writing, BTC is trading at around $66,000, down nearly 4.5% in the last 24 hours.
The reason for this move remains unclear, but members of the cryptocurrency market are concerned that there may be a bigger correction in the near future.
In historical terms, Bitcoin’s current downward trend is consistent with historical patterns pre-halving. The much-anticipated Bitcoin halving is scheduled to occur within 20 days. Looking at previous cycles, Bitcoin has seen sharp declines as the halving approaches.
However, on the bright side, if the Bitcoin price follows existing patterns, it could hit new all-time highs a few months after the halving. The road to new highs can be tough, so if you’re new to BTC, know that this is a tremendous asset.
