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US Govt’s Transfer of 30.17k Bitcoins Stirs Crypto Market

The Essentials in Brief

In light of recent developments surrounding the Bitcoins seized by the US government, which are linked to the infamous Silk Road hack, there is a certain tension in the crypto community. Movements of a total of 30.17k Bitcoins worth nearly 2 billion dollars were observed, sparking speculation about possible impacts on the Bitcoin market. Despite this uncertainty, the price of Bitcoin remained stable over the past 24 hours.

The Seizure and Sale of Bitcoins

The US government sold more than 9,000 Bitcoins seized from fraud cases in June of last year. These Bitcoins came from an operation against the Silk Road hack, in which James Zhong had stolen over 50,000 Bitcoins. Silk Road was a black market in the darknet that used the anonymity of Bitcoin to process transactions and obscure the identity of users. The sale of the seized Bitcoins yielded about 206 million dollars at the time.

Recent Movements

On April 2, 30.17k Bitcoins were transferred from a wallet under the control of the US Department of Justice (DOJ) to an unknown address. A portion of these Bitcoins, about 2,000 BTC worth 132 million dollars, was sent to a Coinbase Prime address, while the remainder was transferred to another address also associated with the US government. These movements have caused a stir in the crypto community, as they fear possible impacts on the market.

Market Reaction and Speculation

Despite fears that a market dump could be imminent, the Bitcoin price remained stable over the past 24 hours. This suggests that market participants are reacting cautiously and there is no increased selling pressure so far. Speculation suggests that the DOJ may have transferred the Bitcoins to Coinbase for custody. These speculations and the resulting uncertainty show how sensitive the crypto market can react to such news.

Our Assessment

Although the recent movements of the seized Bitcoins have caused unrest in the market, the stability of the Bitcoin price shows that the crypto community is reacting cautiously and sensibly. It is important to keep an eye on such developments as they can be potential indicators of future market movements. However, investors should always make an informed decision and not act hastily.

Sources

– Spot on Chain
– CryptoQuant