Bitcoin Price Falls as U.S. Transfers $240M Silk Road-Linked BTC to Coinbase

Bitcoin Prices Dip as U.S. Moves $240M Silk Road BTC to Coinbase

Crypto News- Bitcoin (BTC) saw a sharp decline on Wednesday, dipping towards the $60,000 mark following news of a significant transaction involving seized BTC. A wallet linked to the U.S. Government transferred approximately $240 million worth of seized bitcoin to a Coinbase Prime address, sparking concerns among traders about potential market impact.

Government Moves Seized Silk Road BTC

According to reports from Arkham Intelligence, the government-initiated transaction involved 3,940 bitcoin originally seized from a Silk Road vendor. The BTC, originally confiscated from narcotics trafficker Banmeet Singh and forfeited during a trial in January 2024, has now been moved, potentially indicating upcoming government actions.

History of Government BTC Sales

This move follows previous government actions involving seized bitcoin. In late 2022, approximately 50,000 bitcoin related to the Silk Road website were seized, with a notable $2 billion worth of BTC movement in April 2023, which similarly influenced market dynamics. The last confirmed government sale occurred in March 2023, when 9,861 coins were sold for $216 million.

Market Reaction and Price Movement

Bitcoin, attempting to recover from recent volatility related to Mt. Gox, briefly slipped below the $61,000 mark as news of the BTC transfer emerged. As of the latest update, it has edged back to $61,100, marking a 1% decrease over the past 24 hours. The broader CoinDesk 20 Index mirrored this decline, indicating broader market sentiment.

Impact on Ether (ETH) and Market Sentiment

Ether (ETH), the second-largest cryptocurrency by market capitalization, also felt the impact of the news, declining by 1.6% on the day. The synchronized movement of bitcoin and ether underscores the interconnectedness of the cryptocurrency markets in response to significant regulatory and market developments.

FAQ

For more up-to-date crypto news, you can follow Crypto Data Space.