Bitcoin Dumps to $67,000 as the US Government Moves Over $2 Billion in BTC

The U.S. government moved $2 billion worth of seized bitcoin (BTC) on Monday, causing the price of Bitcoin to tumble below $67,000.
Blockchain data shows that a wallet tagged as “U.S. Government: Silk Road DOJ” transferred 29,800 BTC related to the Silk Road website, with 10,000 BTC worth $670 million suspected to be a deposit to an institutional custody or service.
Prior to the transfer, the U.S. government held $12 billion worth of seized bitcoin, according to Arkham Intelligence.

The US government has moved a large amount of bitcoin linked to the now-defunct dark web marketplace Silk Road, causing the bitcoin price to drop.

ICYMI: 🇺🇸 US government moved $2 billion worth of #Bitcoin earlier today
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Massive Bitcoin Transfer from Government Wallet

The US Department of Justice transferred 29,800 BTC from a wallet labeled “US Government: Silk Road DOJ” to an unlabeled address. This address then forwarded 19,800 BTC and 10,000 BTC to two other wallets.

Arkham Intelligence analysts believe the 10,000 BTC transfer, worth around $670 million, was deposited into some kind of institutional custody service.

Prior large-scale bitcoin movements like this have often preceded government asset sales.

Bitcoin Price Falls Nearly 5%

Following the massive transfer of tokens, the price of bitcoin tumbled nearly 5% from its daily high of around $70,000.

At press time, bitcoin was trading hands around $66,700, down 1.6% over the past 24 hours.

Speculation Over Government Plans

The timing of the government’s bitcoin transfer sparked speculation, as it came just two days after Donald Trump promised at a conference to begin stockpiling bitcoin if elected president.

Before today’s movement, the US government held an estimated $12 billion worth of seized Silk Road bitcoins according to Arkham. It remains unclear if the government plans to liquidate its bitcoin holdings.

Conclusion

The US government’s transfer of $2 billion in Silk Road-linked bitcoin led to a notable decline in the bitcoin price. While the implications remain uncertain, the action has fueled speculation over the government’s plans for its massive bitcoin holdings.

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