- The US government moved almost 40,000 Bitcoins to wallets including the Coinbase (NASDAQ:COIN) cluster.
- A majority of the transfer were internal transfers while some Bitcoins were transferred to Coinbase.
- The reason for the sudden move of the government is unclear.
In accordance with the latest reports, the wallets associated with the government of the United States transferred around 40,000 Bitcoins, a majority of which are internal transfers. Among the total amount of Bitcoin transferred, which is worth more than $2 billion, a definite quantity of coins was moved to the leading crypto exchange Coinbase.
Notably, the leading on-chain data provider Glassnode shared on Twitter that almost 40k BTC from the wallets “associated with US government law enforcement seizures are the move.”
Approximately 40k $BTC from wallets associated with US Government law enforcement seizures are on the move.Of these, the majority appear to be internal transfers (so far), however approximately 9,861 $BTC seized from the Silk Road hacker have been sent to our Coinbase cluster. pic.twitter.com/afuEYcV18L— glassnode (@glassnode) March 7, 2023
In addition, the platform pointed out that approximately 9,861 BTC “seized from the Silk Road hacker” have been sent to Coinbase cluster. It is to be noted that the Silk Road was a notorious black market that was closed by the Federal Bureau of Investigation (FBI) in 2013.
After the closure of the Silk Road, the seized Bitcoins were auctioned in 2014. The reason behind the current transfer of Bitcoins to the Coinbase cluster remains a mystery.
Significantly, a crypto analyst Ali Martinez mentioned that Bitcoins continue to face selling pressure, stating:
Bitcoin dropped below a critical area of support between #23,050 and $23,730, where 1.63 million addresses bought over 910,000 $BTC. Failing to regain this area as support could trigger a sell-off that pushes BTC to $20,700 or even $19,300.
Interestingly, the US government’s sudden move to transfer the Bitcoin holdings pave the way for innumerable questions. There are rumors that the government has been trying to sell off its holdings when the market stays high. In contrast, some others say that the transfer of Bitcoins is just a part of the government’s asset management system.
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