United

Prime

Bitcoin

Silk Road

Arkham

The United States government has transferred nearly $600 million worth of Bitcoin to Coinbase, but it is unlikely to transform into selling pressure.
The US government transferred 10,000 Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" text="null" title="null">BTC</a>) worth over $593 million on Aug. 15, as <a href="https://cointelegraph.com/news/breaking-us-government-moves-10-000-bitcoin" text="null" title="null">reported by Cointelegraph</a>.
The Bitcoin was sent to a Coinbase Prime deposit wallet, <a href="https://x.com/ArkhamIntel/status/1823755773987500286" text="null" title="null">according</a> to onchain analytics firm Arkham Intelligence.
<figure>
 <img alt="US gov’t $590M Silk Road Bitcoin transfer to Coinbase unlikely to be sold — Analyst" name="" src="https://s3.cointelegraph.com/uploads/2024-08/GU9GSX1W4AAZGLi">
 <figcaption style="text-align: center;">
 US government wallet, fund flows. Source: Arkham Intelligence
 </figcaption>
</figure>
Despite the initial concerns, the Bitcoin is unlikely to be sold, according to Ryan Lee, chief analyst of Bitget Research. Lee told Cointelegraph:
<blockquote>
 “This does not mean that 10,000 Bitcoin have already been sold. Last month, the US Marshals Service, an agency under the US Department of Justice, announced a partnership with Coinbase Prime to ‘safeguard and trade’ large digital assets.”
</blockquote>
Whales (large Bitcoin holding entities) can have a significant impact on Bitcoin’s price. Investors often follow the transactions of large holders to gauge potential incoming selling pressure.&nbsp;
Related: <a href="https://cointelegraph.com/news/bitcoin-s-bull-rally-will-continue-another-350-days-bybit" text="null" title="null">Bitcoin’s bull rally will continue another 350 days: Bybit</a>
<h3 id="us-government-transfer-could-be-for-trading-or-custody">US government transfer could be for trading or custody</h3>
August’s agreement between Coinbase and the US Department of Justice (DOJ) could signal an intention to trade large market cap cryptocurrencies like Bitcoin.
However, the government may have simply transferred the assets for safe custody, not active trading, explained Lee:
<blockquote>
 “After all, Coinbase is the primary custodian for US ETFs, and it is a possibility that the US government entrusted the BTC to Coinbase for safekeeping.”
</blockquote>
Moreover, a nearly $600-million sale is unlikely since it would have a drastic impact on Bitcoin due to the current market liquidity, added Lee:
<blockquote>
 “Based on the current price performance, while there is a possibility of it being sold in the market, it is not very likely.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/bitcoin-options-expiry-support-pressure-aug-2024" text="null" title="null">Bitcoin sell pressure may break $56K support as options expiry looms</a>
<h3 id="where-did-the-us-government-obtain-the-10-000-btc">Where did the US government obtain the 10,000 BTC?</h3>
The US is currently the largest geopolitical Bitcoin holder, a point recently highlighted by presidential candidate Donald Trump. If elected, he <a href="https://cointelegraph.com/news/trump-won-t-sell-us-btc-silk-road-bitfinex-seized-assets" text="null" title="null">promised&nbsp;not to sell&nbsp;any of the US government’s Bitcoin holdings</a>.
The recently transferred 10,000 Bitcoin was originally seized during the Silk Road raid back in 2022 when the DOJ announced seizing 50,000 BTC from the dark net marketplace.
At the beginning of April, the US government <a href="https://cointelegraph.com/news/silk-road-bitcoin-justice-department-wallet" text="null" title="null">transferred $2 billion worth of Bitcoin seized from Silk Road</a> in the first significant onchain movement of the funds since their seizure.
The Silk Road marketplace, defunct for more than 10 years, allowed users to buy and sell illicit goods, including weapons, drugs and stolen credit card information. 
US authorities arrested its creator, Ross Ulbricht, in 2013. He is serving two life sentences without the possibility of parole.
Magazine: <a href="https://cointelegraph.com/magazine/china-crypto-ban-investors/" text="null" title="null">How Chinese traders and miners get around China’s crypto ban</a>

US gov’t $590M Silk Road Bitcoin transfer to Coinbase unlikely to be sold — Analyst

Table of Contents

Cointelegraph

Other articles published on Aug 15, 2024

Coinbase Announces New Altcoin Listings for Futures Trading

Fed rate cuts are not a sure thing — What does this mean for Bitcoin?

Bitcoin Faces Potential Decline as Bulls Struggle

Crypto Trading Platform ezBtc Allegedly Diverted $9.5M Customer Funds to Gambling Sites

Ethereum Sees Surge in On-Chain Activity as Institutional Investment Soars

Nakamoto Games (NAKA) Price Soars to $0.90 as Bullish Momentum and Market Interest Surge

Join our free newsletter for daily crypto updates!