U.Today - Bitcoin seized by the U.S. government from the illegal anonymous internet trading platform Silk Road is on the move again. Approximately 4,000 BTC were transferred on Coinbase (NASDAQ:COIN) prime from the wallet owned by the government.
At present, the U.S. government owns 213,546 Bitcoin, which is approximately $13 billion. Even though it is a small portion of their overall holdings, this most recent transfer is nonetheless significant.
The move to Coinbase Prime, an exchange that institutional investors frequently use raises the possibility of plans to sell off some of these assets. Primarily recognized for its illicit drug sales, the Silk Road was the first contemporary darknet market and online black market.
Under the alias Dread Pirate, Ross Ulbricht introduced it in February 2011. In October 2013 the FBI closed down the website, and Ulbricht was taken into custody and given a life sentence.
Other governments have also been selling their Bitcoin holdings in recent months. For example the German government has been selling off a significant portion of its $2 billion worth of Bitcoin holdings. Governments are selling off cryptocurrency they have seized potentially to reduce market volatility or capitalize on current values.
This sale is in line with a larger trend in this regard. Such a substantial Bitcoin movement could have a big impact on the market. Large transfers can occasionally cause volatility to rise, particularly when they are connected to government wallets.
Unfortunately, large sales are coming in amid a period of high volatility on the market, where Bitcoin struggles to hold above $60,000. However, the precise motivations behind this transfer are unknown to the public. Usually the money raised from these sales goes toward funding different government initiatives or is given back to the people who were harmed in the crimes linked to the seized property.