The transfer of Ethereum seized in 2022 to Coinbase Prime by the US government has raised concerns among market participants.
US Government Transfer of Ethereum
The US government moved Ethereum (ETH) to Coinbase Prime, causing unease in the crypto community. This transfer involves ETH seized in 2022 from an NFT scam linked to Chase Senecal. The wallet holds over 60,000 ETH, equating to approximately $152 million at current market rates.
Market Reaction to the Transfer
Ethereum's immediate market reaction included a brief decline in prices following an alert from blockchain analytics firm Arkham Intelligence about the transfer. A test transaction of $10 was conducted from the government-designated wallet.
Potential Market Implications
This move raises concerns over potential sell-offs akin to past government liquidations of seized cryptocurrency. Historical US government sales of cryptocurrencies, including Bitcoin, have caused similar market jitters, leading to temporary dips and heightened volatility.
The implications of this transfer may put pressure on Ethereum's spot price if liquidation follows. Historical data suggests close monitoring is crucial to anticipate shifts in the crypto market.
