Following the German government's sale of nearly 50,000 bitcoins seized from the Movie2k platform, the US government has also been moving its cryptocurrency assets more frequently. Recently, the US moved 10,000 bitcoins to Coinbase Prime, raising concerns about potential massive sell-offs.
US Government Bitcoin Move
The US government recently moved 10,000 bitcoins, worth about $590 million, from one of its wallets to a Coinbase Prime account. This action led to a 3.3% drop in Bitcoin’s price, bringing it below the important $60,000 mark to around $58,330.
Market Reactions & Speculations
The transfer to Coinbase Prime has stirred discussions among traders and analysts. Some believe that the government might be preparing to liquidate a portion of its holdings, which could introduce significant selling pressure on Bitcoin, potentially leading to a price drop. Others speculate that this move could be related to institutional investment strategies, given Coinbase Prime’s role as a platform for professional and institutional traders.
Previous Moves and Current BTC Holdings
This is not the first time the US government has moved large amounts of bitcoin. Two weeks ago, in July, the government transferred $2 billion worth of bitcoin, likely to Coinbase. Currently, the US government holds 203,239 bitcoins, valued at approximately $12.05 billion. These assets were largely acquired through seizures, including from the Silk Road marketplace.
The movement of 10,000 bitcoins by the US government to Coinbase Prime has raised questions and speculations within the crypto community. Regardless of the reasons behind such actions, they have a significant impact on the market and require careful monitoring.
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