US Government Transfers 10,000 Bitcoin (BTC) to Coinbase Prime, Influencing Crypto Market Trends
- WBOYOriginal
- 2024-08-15 18:14:15266browse
According to on-chain data, the US government transferred 10,000 Bitcoin (BTC) to Coinbase Prime, an institutional trading platform. This transaction, worth approximately $593.5 million, notably influenced the crypto market trends.
The United States government recently transferred 10,000 Bitcoin (BTC) to Coinbase Prime, a move that has impacted crypto market trends and sparked speculation.
According to on-chain data, the transaction, valued at approximately $593.5 million at the time, originated from the Silk Road DOJ Confiscated Funds, a government-managed account.
Is the US Government about to Sell Bitcoin?
Such deposits to exchanges usually indicate a potential sale by the holder. However, in this case, the broader context suggests a strategy more aligned with custodial intentions.
Institutional investors utilize Coinbase Prime for custody and trading of large-cap crypto, making the transfer to the platform part of a broader strategy rather than a direct indication of a sale.
After funds are moved to centralized exchanges, it becomes challenging to precisely track their further movement.
“I hope this assumption is wrong and this is just fud, but still need to remain open minded, as trading can never rely on “Hope” but need to manage risks accordingly,” crypto trader Nachi commented on the development.
The timing of the transfer also coincided with a sharp 4% decline in Bitcoin's value. Within 24 hours, the premier cryptocurrency dropped from a high of $61,800 to about $58,397.
Meanwhile, all spot Bitcoin Exchange Traded Funds (ETFs) recorded a net outflow for the first time this week, with a total of $81.4 million exiting the funds.
Grayscale's Bitcoin Trust and Fidelity's Bitcoin Fund experienced the largest withdrawals, amounting to $56.9 million and $18 million, respectively.
This year, the US government has moved 15,999 BTC, valued at approximately $966.5 million, to Coinbase at an average price of $60,410, as reported by Spot On Chain.
Currently, the government retains about 203,600 BTC across various addresses, equating to nearly $11.91 billion.
“If they really started selling, cant imagine why they wont sell the rest,” Nachi added.
The government's involvement in Bitcoin transactions follows the 2022 seizure of over 50,000 BTC from James Zhong, who was convicted of wire fraud for manipulating transactions on the dark web marketplace Silk Road.
The last publicized sale of Silk Road-related assets by the government was in March 2023, with over 9,800 BTC being offloaded for around $216 million.
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