Bitcoin down as US Government moves 10,000 BTC to Coinbase Prime

The US government has moved 10,000 Bitcoin seized from Silk Road to Coinbase Prime. BTC is down over 3% following the move, while US CPI data

Bitcoin price showed a unique trend throughout 2023. As BTC’s price movement historically shifted with changes in the fund reserves, a pattern emerged. However, this trend has altered recently, and on-chain data now suggests a different correlation.

Bitcoin price dropped sharply on Wednesday, and on-chain data reveals that the US government moved 10,000 Bitcoin. The massive sell-off in the cryptocurrency market also comes as US CPI data hints at the possibility of the Fed cutting rates.

Bitcoin price drops as US government moves 10,000 BTC

On-chain data from Arkham Intelligence shows that the US Government moved 10,000 Bitcoin, now worth $591 million, to Coinbase Prime on March 22. The wallet, which is named US Government: Silk Road DOJ, first made the initial transfer two weeks ago, and the funds were again transferred to Coinbase Prime on Wednesday.

The Bitcoin is part of the cryptocurrency that was seized by the US Justice Department from the now-defunct darknet marketplace, Silk Road. The total amount of Bitcoin that was seized from the platform stood at 173,991 BTC.

After the initial seizure in 2014, the US government began moving portions of the Bitcoin in 2018. Since then, the government has been making regular transfers. A large portion of the seized Bitcoin is still held by the US government.

Bitcoin price movement and fund holdings

Historically, the movement of Bitcoin from the fund has corresponded with changes in BTC’s price. As the fund sells Bitcoin, the price tends to drop, and vice versa. This pattern was evident until January 2023.

However, on-chain data now shows that this trend has altered. Despite the large sell-offs by the fund in recent months, Bitcoin’s price has shown minimal response. This suggests shifts in market dynamics or other influences that warrant a deeper analysis.

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