Bitcoin fell slightly on Monday as the U.S. government transferred a significant amount of Bitcoin from its Silk Road crypto trove.
Data from Arkham showed that the U.S. government sent approximately $2 billion worth of Bitcoin (BTC) to a new address. The transactions were made in two batches, valued at roughly $669 million and $1.33 billion each.
According to Arkham, the funds were likely moved to an institutional custodial service, with Coinbase being a likely although unverified candidate due to its role as the preferred brokerage platform for U.S. authorities.
UPDATE: The U.S. Government has split the $2B Bitcoin into two addresses:10,000 BTC ($669.35M): bc1qlap8hkt9genaljz5nt2zlehhudx63zlahr2zek19,800 BTC ($1.33B): bc1qngydl7hmgdtmuqjmtsyj3pcwszv0yn5mj6kz4cWe believe this represents a 10,000 BTC deposit to an institutional… https://t.co/0aULBXGd8P pic.twitter.com/RTwtaqvMmM
— Arkham (@ArkhamIntel) July 29, 2024
No one is entirely sure who oversees the address yet. Bitcoin declined around 1% following the news and traded under $67,600. The fall came after BTC briefly touched $70,000 for the first time since May.
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Bitcoin community reacts
The lack of detailed information about the wallet’s management did not quell speculation. Tyler Winklevoss, co-founder of Gemini, noted that the transfers occurred shortly after former President Donald Trump announced his intentions to halt all government Bitcoin sales if re-elected. This timing led to further speculation about the current administration’s plans for the nation’s BTC reserves.
Speculators wonder if the current Democratic administration, led by President Joe Biden and Vice President Kamala Harris, plans to offload the nation’s BTC horde.
On Saturday, @realDonaldTrump pledged to never sell any of the US government's bitcoin. Two days later, the Biden-Harris Administration moves $2 billion of Silk Road bitcoin. Great look and great way to reset with our industry. 🤡
— Tyler Winklevoss (@tyler) July 29, 2024
At the Bitcoin 2024 conference in Nashville, Trump promised to convert the seized Silk Road BTC into a strategic national reserve. His promise to fire Securities and Exchange Commission chair Gary Gensler was met with enthusiastic applause from the crypto community. Additionally, Trump’s campaign has highlighted the case of Ross Ulbricht, the creator of Silk Road, with many in the Web3 community supporting his release..
Read more: Pro: Trump’s Bitcoin 2024 speech ‘pressured’ Harris to embrace crypto
