🌎 U.S. Government Moves $593.5M in Bitcoin to Coinbase

Silk Road Bitcoin on the Move Again

Recently, the U.S. government transferred Bitcoin worth $593.5 million to Coinbase Prime, according to data from Arkham Intel. This transaction involved 10,000 BTC sent to the wallet “bc1ql” two weeks ago. Following the news, BTC experienced a 3.6% drop, with the price settling around $59,100 after an initial spike due to positive CPI data.

Historical Context and Recent Developments

In late July, the U.S. government also moved $2 billion in Bitcoin, with Coinbase believed to be the recipient. This transfer came shortly after remarks from Gemini co-founder Tyler Winklevoss, who noted that authorities moved the BTC following a speech by former president Donald Trump on creating a strategic Bitcoin reserve.

There is ongoing speculation about whether the current administration plans to sell some or most of its BTC holdings before the winter elections. Despite these transactions, America remains the largest sovereign Bitcoin holder, with more than $11 billion in Bitcoin.

Market Reactions and Future Projections

Sell pressure and market volatility may increase due to potential U.S. government liquidations on Coinbase. Alongside the $2.5 billion transferred by American authorities, Mt. Gox customer repayments are also in progress. Crypto exchange BitGo received $2 billion in BTC from the Mt. Gox Trustee, and some claimants may choose to take profits.

How Bitcoin will handle this sell demand remains uncertain, but inflows from spot BTC exchange-traded funds (ETFs) could potentially offset market dips.