Bitcoin (BTC) Price Dips as US Government Dumps 3,940 BTC ($241.22M) on Coinbase Prime

Cryptocurrency advocate John Deaton (who particularly supports Bitcoin and XRP) has taken to his account on the X social media platform to share his take on the recent quarter-million-USD worth of Bitcoin transaction made by the U.S. government to the Coinbase exchange.

U.S. government sends quarter-million-USD BTC transaction to ‘illegal’ Coinbase

Cryptocurrency advocate John Deaton, who particularly supports Bitcoin and XRP, has shared his take on the recent quarter-million-USD worth of Bitcoin transaction made by the U.S. government to the Coinbase exchange.

This was part of the funds confiscated in 2013 from the Silk Road dark web market place when it was shut down and its founder Ross Ulbricht arrested and given two lifetime prison sentences.

Deaton stated that this does not coincide with the recent SEC policy of proclaiming Coinbase illegal.

This is the NONSENSE people are sick and tired of coming from our government. @GaryGensler, working at the direction of @ewarren, joined the anti-crypto army she promised to build when she announced her reelection. Gensler, as Chairman of the @SECGov, has declared Coinbase’s… https://t.co/nn1Vv6I6BJ

Gary Gensler proclaims Coinbase "illegal"

The U.S. Securities and Exchange Commission Chairman Gary Gensler has “declared war” on Coinbase by labeling its business as illegal for trading altcoins, which he refers to as “unregistered securities,” setting forth its charges against the exchange in June last year.

In response, Coinbase filed a lawsuit against the regulator. However, what has happened now is that the U.S. government has sent 3,940 BTC (around $241.22 million) to this exact exchange to be sold. This money was initially confiscated from a drug trafficker on the Silk铩 Road, and then was forfeited at trial in January 2024.

John Deaton called this move “nonsense coming from our government” since it allows Gary Gensler and Senator Warren to stand against the whole cryptocurrency space but continues to use the services of the largest U.S.-based crypto exchange, Coinbase Prime. Prior to that, a similar sale occurred in March last year when the U.S. government’s wallet sold 9,861 coins for $216 million.

Bitcoin price pushed down by sale

After the transaction, the U.S. government still owns 213,540 BTC confiscated from Silk Road, which is currently valued at more than $13 billion, according to cryptocurrency journalist Colin Wu.

The US government wallets deposited 3,940 BTC($241.22M) into Coinbase Prime today. The US government currently holds 213,546 BTC($13.07B). The founder of CryptoQuant said it would not have much impact on the market. Coinbase Prime handled 20-49K BTC in sell-side liquidity daily…

The founder of on-chain data aggregator CryptoQuant believes that this sale will hardly impact the price of Bitcoin in the market. However, this sale coincided with a 1.76% Bitcoin price fall as the world’s flagship cryptocurrency dropped from $61,778 to the $60,688 level. By now, BTC has somewhat recovered and is trading at $61,260 at the time of this writing.

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