The selling pressure in the Bitcoin market again surged, as the US government transferred 4,000 Bitcoins to the Coinbase crypto exchange.
The US government is currently holding nearly 213,546 Bitcoins, on-chain data showed. All these Bitcoin funds were seized from those actors who were involved in illicit activities e.g. from the Silk Road, an infamous online marketplace on the dark web, dealing in illegal drugs, weapons, and other illicit goods. The net value of all types of crypto assets held under the US government authority is nearly $13.45 billion at the current trade price of crypto assets.
The US government recently moved about 3,940 Bitcoin, worth $241 million, to Coinbase. This suggests they might be planning to sell it, according to data from Arkham Intelligence.
Update: US Government Sends $240M BTC to Coinbase Prime
The US Government just moved 3,940 BTC ($240M) to Coinbase Prime.
This BTC was originally seized from narcotics trafficker Banmeet Singh, and forfeited at trial in January 2024.
Transaction: https://t.co/hZ1CwqWCmF pic.twitter.com/9t6k8Wdizq
— Arkham (@ArkhamIntel) June 26, 2024
The recent transfer of 3,940 Bitcoin by the US government to Coinbase is expected to heighten panic selling pressure in the Bitcoin market.
This transfer, equivalent to $241 million, signals a potential sell-off. When such large volumes hit exchanges, it typically indicates a willingness to liquidate assets, which can undermine investor confidence. This move might lead investors to fear a market downturn and prompt them to sell their holdings to avoid losses, thereby intensifying selling pressure. Such actions often trigger a chain reaction of selling, contributing to increased market volatility and uncertainty about Bitcoin’s price direction.
It is worth it to note that recently the German government also transferred 400 BTC to the Kraken & Coinbase crypto exchange and also they moved 500 BTC to untagged Bitcoin addresses.
All these things are only directed fingers toward the high-sell pressure situation in the Bitcoin market in the upcoming days.
Read also: Cardano Triumphs: Swift Action Thwarts Major DDoS Attack Effortlessly