- 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.
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.
