The US government recently relocated 10,000 Bitcoin (BTC) seized from Silk Road, an infamous online black market. These large-scale Bitcoin transfers are part of the government’s strategy to move assets to new wallets or exchanges.
Destination of 10,000 BTC Transfer
In a post on X, Arkham Intelligence reported that the US government transferred 10,000 BTC valued at $593.5 million from assets seized during Silk Road’s takedown to Coinbase Prime.
The community is speculating about the impact of this massive transfer on the market, as the US government had previously seized over 50,000 BTC worth $3.36 billion from Silk Road.
The 10,000 Silk Road BTC was sent from a government-associated crypto wallet to wallet address bc1ql and then redirected to Coinbase Prime deposit wallet 33J.
There are questions about whether the government plans to sell the BTC, which could greatly affect the market still recovering from recent crashes in major cryptocurrencies like Bitcoin and Ethereum.
While deposits to exchanges usually indicate a potential sell-off, in this case, the transfer could be for custody purposes. The US Marshals Service selected Coinbase Prime for custody and trading services for large-cap digital assets.
Bitcoin Price Decline
Following news of the Silk Road BTC transfer, Bitcoin’s price dropped, now trading below $59,000 according to CoinMarketCap.
Bitcoin has been on a downward trend in recent weeks, experiencing significant price fluctuations while trying to stay above $60,000. The cryptocurrency faced a more than 20% crash due to widespread liquidations and sell-offs by whales and the German government.
Speculation about a potential BTC sell-off by the US government could lead to increased volatility and further price declines. Currently, Bitcoin is trading at $58,321, reflecting a 4.11% decrease in the last 24 hours.
