According to blockchain analytics firm Lookonchain, US government wallets deposited $241 million worth of Bitcoin to Coinbase.
The price of Bitcoin slipped back below the $61,000 level following the transfer. However, CryptoQuant CEO Ki Young Ju believes that the recent sale is unlikely to impact the market.
"Coinbase Prime handled 20-49K BTC in sell-side liquidity daily during high spot ETF inflows and 6-15K daily during low spot ETF inflows," the analyst explained.
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The US is the top owner of Bitcoin among countries around the world, boasting a $13 billion fortune.
A big portion of its Bitcoins comes from confiscations related to the now-defunct Silk Road dark web marketplace and the infamous Bitfinex hack.
It is worth noting that some of the seized Silk Road coins were purchased by famed venture capitalist Tim Draper back in 2014.
Other states with large Bitcoin holdings
Over the past two weeks, the German government also offloaded more than $200 million worth of the largest cryptocurrency.
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The selling spree added yet another bearish narrative during a major market correction.
The German government became one of the largest holders of Bitcoin after cracking down on Movie2K, one of the most popular streaming websites among pirates, and confiscating its holdings from one of its former operators back in 2014.
China and the UK are also among the largest Bitcoin holders with $11.8 billion and $3.7 billion, respectively.
In 2020, Chinese authorities seized $4 billion worth of crypto from the infamous PlusToken Ponzi scheme.
In January, the Metropolitan Police also confiscated more than £1.4 billion worth of the largest cryptocurrency that was derived from a large-scale China-based investment fraud.
