Bitcoin (BTC) Price Dumps $4K After US Government Wallet Moves $2B in Seized Coins

Hype around the Bitcoin 2024 conference in Nashville propelled the world's largest cryptocurrency's value to nearly $70,000 earlier Monday, but the digital currency quickly shed $4,000 Monday night after a digital wallet linked to the U.S. government moved some $2 billion worth of seized Bitcoins.

Bitcoin price drops $4K after US gov’t wallet moves $2B in seized BTC

The world’s largest cryptocurrency dropped sharply Monday night after a digital wallet linked to the U.S. government moved nearly $2 billion worth of seized Bitcoins.

Bitcoin’s price dropped sharply Monday night after a digital wallet linked to the U.S. government moved nearly $2 billion in seized cryptocurrency, according to blockchain analytics.

As of Monday morning, Bitcoin was already trading at $66,900, but the digital coin quickly shed $4,000 after news of the wallet's activity spread. The cryptocurrency fell to lows of around $66,000 within less than 12 hours, data from CoinGecko showed.

A wallet linked to the U.S. government moved nearly $2 billion in seized Bitcoins on Monday, causing the world's largest cryptocurrency to drop sharply. (CoinGecko)

Blockchain analytics leader Arkham Intelligence revealed that a wallet linked to the U.S. government “split the $2B Bitcoin into two addresses” on Monday. One address reportedly received 10,000 Bitcoins, while the other received 19,800 BTC.

“We believe this transfer represents a 10,000 BTC deposit to an institutional custody/service,” Arkham said.

However, some crypto users on X discussed the motives behind the transfer beyond the "why."

One user asked what the government will do with all the seized $BTC it olds. "Will they use it to invest back in the economy or fund a war? Or sell it?" the user asked.

Another user suggested there could be an "insider or a group of insiders" shorting Bitcoin before the coins are moved. One user questioned why the funds had to be split into two separate wallets if the purpose was for custody.

A similar movement in Bitcoin’s price was observed last week after a wallet linked to the U.S. government moved nearly $4 million in seized Bitcoins.

The coins were seized from Ryan Farace, who was convicted for selling Xanax on the dark web and accepting Bitcoin payments for his drug trafficking activities.

According to a recent report by Bloomberg, the transfer of seized Bitcoins on Monday could be related to a recent announcement from cryptocurrency exchange Coinbase.

Coinbase was selected by the U.S. Marshals Service to provide custody and trading services to the digital assets held by the agency, according to a statement from Coinbase.

“The USMS conducted a competitive due diligence process that evaluated a range of solutions, ultimately choosing Coinbase due to our strong track record and ability to securely provide institutional-grade crypto services at scale,” the crypto exchange said.

Meanwhile, investor at @WClementeIII said it was "not a coincidence" that the massive Bitcoin stash was moved after Republican presidential nominee Donald Trump promised to support BTC and the broader crypto space during Bitcoin 2024.

“US Gov moving $2 billion in seized BTC 2 days after Trump's speech is not a coincidence lol,” Clemente said in a tweet.

Notably, Trump announced a plan to make the U.S. government "hodl" all of its Bitcoin holdings if he gets elected.

“We will make sure that cryptocurrency booms like never before, and we will ensure that America remains the world capital of Bitcoin, digital currency, blockchain technology and anything else having to do with those incredible new forms of wealth,” Trump said at Bitcoin 2024.

“Together, we will keep America great by making sure that the future of finance belongs to the United States of America.”

fmr president trump spoke for 49 minutes on saturday at bitcoin 2024 in nashville, a truly historic speech

here’s a condensed 12min version w/ his most important statements on bitcoin & crypto — click the times below to jump around

0:00 hello bitcoiners

0:23 bitcoin legends… pic.twitter.com/90hBX1icUy

Another Bitcoiner said it appears as if the current administration was "trying to counter" Trump's "hodl" campaign.

“If there's no Bitcoin left when he gets to office then it's a moot point,” the user added.

“Looks like they're trying to counter his campaign promise to not sell...if there's no bitcoin left when he gets to office then it's a moot point.”

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