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BTC dumps as the US government moves $2 billion worth of Bitcoin.
The US government seized a significant amount of Bitcoin (BTC) connected to the Silk Road marketplace, with the most recent transaction involving 30,174 BTC, valued at approximately $2 billion. This transaction was conducted by the US Justice Department and was part of the ongoing efforts to address illegal activities associated with Silk Road.
Silk Road was an infamous dark web marketplace where various illegal products and services were traded using Bitcoin as the primary currency. The platform was shut down by the US government in 2013, and since then, authorities have been working to seize assets connected to the site.
In 2021, authorities raided the property of James Zhong, who was convicted for his role in the Silk Road case. During the raid, they discovered hard wallets holding Bitcoin, which was part of the assets seized from the Silk Road platform. The majority of the seized crypto was transferred to a Coinbase address this month.
The US government has been actively selling off the seized Bitcoin, with the most recent sale in March 2023, when it unloaded 9,861 coins for $216 million. These actions have not only served to disrupt the illegal activities facilitated by the Silk Road but also added a significant amount of Bitcoin to the government's holdings.
This situation has caught the attention of the crypto community and public, as the large-scale movements of Bitcoin can influence market dynamics. The potential for the government to sell more of the seized assets may lead to increased selling pressure in the market.
Although this is a very large amount to be sold into the market, Bitcoin market was reported to exceed $20 billion in daily trading volume this month. A number substantially large enough to offset the outflow.
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