The U.S. has transferred 3,940 seized Bitcoin from Silk Road to Coinbase Prime, causing concerns about a potential massive sell-off and its impact on Bitcoin’s price. Previously, there were speculations about the U.S. government planning to sell $1.18 billion worth of Bitcoin connected to Silk Road. However, according to updated data from Arkham Intelligence, $240 million worth of BTC has been sent to Coinbase Prime. These funds were originally seized from narcotics trafficker Banmeet Singh and forfeited at trial in January 2024.
Collin Brown shared the updates on Twitter, stating that Bitcoin tumbled as a result of the U.S. government’s transfer of $240 million in seized Silk Road Bitcoin to Coinbase. The market reacted nervously, causing Bitcoin to dip below $61,000.
Yahoo Finance reported that the U.S. government has been actively seizing and moving Bitcoin related to Silk Road. In late 2022, they seized approximately 50,000 Bitcoin, and on April 2, 2024, $2 billion worth of Bitcoin was moved, impacting the market price.
The movement of seized Bitcoin by the U.S. government has had a notable impact on Bitcoin’s price. The latest transfer caused Bitcoin to drop to a low of $60,800. Despite attempts to recover from previous slumps, Bitcoin and other cryptocurrencies like Ether experienced declines following the news.
However, this new development seems to have triggered a slight positive trend for the BTC price. According to CoinMarketCap, Bitcoin is currently priced at $61,329.52, showing a modest increase of 0.09% in the past day and a decrease of 6.69% in the past week.
The market is anxiously awaiting further developments regarding the potential sell-off of the seized Bitcoin.
