US Government Moves $590 Million Worth of Bitcoin to Coinbase Prime Custody Wallet

The news comes just a day after Arkham reported that a Bitcoin wallet believed to be linked to BitGo received about US$2.19 billion

The US government has reportedly transferred a large sum of Bitcoin to a Coinbase Prime deposit wallet, according to blockchain analytics firm Arkham.

The funds, which are said to be worth around US$590 million (AU$895 mn) at current rates, were received into a known government wallet two weeks ago. Now, according to Arkham, they have been shifted once more.

This news comes hot on the heels of another report from Arkham, which indicated that a Bitcoin wallet believed to be linked to BitGo had received about US$2.19 billion (AU$3.3 bn) from a wallet linked to the defunct Mt. Gox exchange. Shortly after, approximately US$1.96 billion (AU$2.95 bn) was transferred from this wallet to another that began conducting test transactions.

It’s likely that the US Department of Justice, which is holding over US$12 billion (AU$18.2 bn) in seized BTC, is moving assets to Coinbase Prime for custody. These transfers, which follow a partnership to manage large-cap digital assets, include the 10,000 BTC from Silk Road confiscations and are not necessarily aimed at immediate liquidation.

Amid Bitcoin’s price fluctuations, it remains unclear whether the DOJ has any immediate plans to sell, although the potential for future sales exists as part of ongoing asset management.

Bitcoin Drops Below US$59K As Market Goes “Boring”

Meanwhile, BTC has dropped by almost 3% in the past 24 hours, going from a US$61,679 (AU$93,191) peak to currently trade at US$58,928 (AU$89,034).

Data from Coinglass shows that 37,155 traders have been liquidated in the past 24 hours, with a total of US$121.46 million (AU$184.61 million) in liquidations.

The news of the US government may have spooked the market, which is interesting because the macro-outlook is rather positive.

As analyst Michaël van de Poppe has noted on platform X, US CPI data came in positive, which is slightly lower than expected. This means that the “likelihood of a rate cut is approaching for the FED”, which suggests increased liquidity and more upside potential for Bitcoin.

CPI data comes out and is positive, slightly lower than expected.

The likelihood of a rate cut is approaching for the FED, through which the likelihood of QE & upward price action for #Bitcoin has increased as well. pic.twitter.com/IfzIcmZ3OU

However, fellow analyst Miles Deutscher is not so sure about a market upswing right now, saying the overall sentiment is mixed and he believes that “things are getting boooooooring”.

We're entering the apathy/time capitulation phase again.

In the last 2 weeks:

– Crypto YT views are down ~-30%

– Coinbase app ranking is down from #159 to #502

– Trading volume is down -21% (Binance)

Strap in. Things are getting boooooooring.

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