The U.S. transferred $2 billion worth of Bitcoin to Coinbase
According to Cointelegraph, the U.S. government transferred around $2 billion (approximately 19,800 coins) worth of Bitcoin to Coinbase on December 2, causing significant market attention.
The blockchain analysis platform Arkham tracked this transaction, showing that the government completed this massive fund transfer with only $3.34 in fees.
Where did the U.S. government's Bitcoins come from?
The source of this batch of Bitcoins is from a significant case. In 2014, the U.S. government seized the dark web trading platform 'Silk Road', which was an important channel for illegal transactions on the dark web, primarily used for buying and selling drugs and illegal services.
In 2022, the U.S. government seized approximately 50,000 Bitcoins from James Zhong, the mastermind behind the Silk Road Bitcoin theft.
As of August this year, the total amount of Bitcoin held by the U.S. government related to Silk Road reached 69,370 coins, valued at approximately $4.4 billion at the time.
It is worth noting that the U.S. Supreme Court recently declined to hear a case regarding the ownership of these Bitcoins, meaning the government can freely dispose of these assets.
(Crypto City) previously reported that in just two weeks in July and August 2024, the U.S. government transferred approximately $2.6 billion worth of Bitcoin to new wallet addresses, leading the market to speculate about future asset disposals.
The U.S. is transferring a large amount of Bitcoin, causing market panic.
After Arkham monitored and announced the news of the U.S. transferring Bitcoin early this morning, the market reacted immediately, with investors worried that the U.S. government might sell these Bitcoins, causing a market sell-off.
Data from CoinGecko shows that Bitcoin once dropped to around $94,600, but has since risen back above $96,000.
However, Coinbase has signed an asset management contract with the U.S. Marshals Service, meaning it is only holding assets for the government, indicating that these Bitcoins will not 'immediately return to the market.'
Another noteworthy political issue is that Trump promised before the election to release Silk Road founder Ross Ulbricht, and he also intends for the U.S. government to retain the Bitcoin it currently holds or may acquire in the future, adding variables to the entire case.
Regardless, this massive Bitcoin transfer once again highlights the significant influence of the U.S. government in the cryptocurrency market and reminds investors to closely monitor potential market changes.
Readers curious about the U.S. government's Bitcoin addresses can track them at the Arkham platform. According to current data, the U.S. government's wallet holds the following coins:
188,000 Bitcoins (including law enforcement results from Silk Road, Bitfinex hack, etc.)
59,568 Ether ($ETH)
122 million Tether ($USDT)
A small amount of $WBTC, $BNB, $BUSD, $AUSDC, and $WETH
Source: Arkham's cryptocurrency assets held by the U.S. government
[Disclaimer] The market carries risks, and investments should be made cautiously. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Invest at your own risk.
'Major Volatility Alert! Is the U.S. Government about to crash the market by transferring $2 billion worth of Bitcoin to exchanges?' This article was first published in 'Crypto City.'
