The US government has, not for the first time, caused a stir in the crypto market. Nearly $600 million worth of seized Bitcoin (BTC) has been moved around the blockchain, fueling speculation that it could be dumped on the market.
You can imagine that such a sale will not be pleasant for the Bitcoin price, which has caused unrest within the crypto community.
US Government Moves 10,000 Bitcoins
Blockchain analysis firm Arkham Intelligence reported yesterday just after 6:00 PM Dutch time on social media platform X that no fewer than 10,000 bitcoins had flowed out of the US government’s well-stocked wallet.
To make matters worse, the astronomical pile, worth nearly $594 million, was sent to a Coinbase Prime wallet address. This makes it seem very likely that the bitcoins will continue their way to the market, which logically means bad news for the bitcoin price.
The Bitcoins come from the notorious Silk Road dark web marketplace, which was shut down by authorities in 2013. Transactions on Silk Road were done almost exclusively in Bitcoin, to ensure anonymity.
When the marketplace was shut down, US authorities confiscated approximately 144,000 bitcoins. In 2022, more than 50,000 bitcoins were also seized from James Zhong, who stole them from the platform in 2012 by exploiting a vulnerability in the system.
The US government has liquidated some of its massive BTC stockpile several times in recent years, but it still owns over 200,000 bitcoins worth more than $12 billion.
BTC price drops sharply after CPI figures
Since the big move came to light, Bitcoin has held up remarkably well. However, just hours earlier, right after the release of the US Consumer Price Index (CPI), Bitcoin had already taken a huge dive of over 4% to around $59,000.
This decline came as a bit of a surprise as the new inflation figures came in slightly lower than expected. The annual CPI came in at 2.9%, while 3% had been expected. The monthly CPI and core CPI, on the other hand, came in entirely as expected.
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Source: https://newsbit.nl/slecht-nieuws-amerikaanse-overheid-verplaatst-600-miljoen-aan-bitcoin/
