United

Prime

Bitcoin

<p>This afternoon, the U.S. government transferred 3,940 Bitcoins to the Coinbase platform. Amid economic uncertainties, this massive transfer of cryptos, seized from a notorious drug trafficker, beyond its judicial aspect, could influence market dynamics and investor decisions in the coming weeks.</p>
<h2 id="h-the-bitcoin-transfer-by-the-u-s-government">The Bitcoin transfer by the U.S. government</h2>
<p>On June 26, 2024, <a href="https://www.cointribune.com/en/did-you-know-is-july-historically-the-best-month-for-bitcoin/" target="_blank" rel="noopener noreferrer nofollow">the United States government</a> transferred 3,940 Bitcoins to a Coinbase Prime wallet. These Bitcoins had been seized from Banmeet Singh, a convicted drug trafficker, during his trial in January 2024. The transaction, carried out at 17:00:41 UTC, is part of a larger seizure of over 8,100 Bitcoins, valued at approximately $150 million at the time of their confiscation.</p>
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<p>Banmeet Singh, arrested in 2019 in London on drug distribution charges, was extradited to the United States in 2023. According to the U.S. Department of Justice, Singh ran a drug smuggling network active in several U.S. states, including Maryland, New York, and Florida, among others. In addition to the seizure of his Bitcoins, Singh was sentenced in April 2024 to a five-year prison term, although he was released shortly after, having already served part of his sentence in pre-trial detention. The crypto seizure carried out by the DEA in this case is the largest ever conducted by the agency.</p>
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<h2 id="the-market-impact">The market impact</h2>
<p>The recent massive sales of Bitcoin by the U.S. government and other European governments have heightened concerns about selling pressure on the market. The transaction of 3,940 Bitcoins by U.S. authorities, which adds to a previous liquidation of $241 million of Bitcoin, has exacerbated investors’ fears. Consequently, the price of Bitcoin dropped below $61,000, raising questions about the long-term stability of the market.</p>
<p>Despite these concerns, some experts remain optimistic. Ki Young Ju, CEO of CryptoQuant, <a href="https://cointelegraph.com/news/u-s-government-sends-3-940-bitcoin-coinbase-exchange" target="_blank" rel="noopener noreferrer nofollow">believes</a> that government sales should not have a major impact on the market. He points out that Coinbase Prime regularly handles significant sales volumes, ranging from 20,000 to 49,000 BTC during high ETF spot inflows, and from 6,000 to 15,000 BTC during lower inflows. This liquidity management capability could mitigate the effect of the massive Bitcoin sales by governments.</p>
<p>The massive crypto sales by authorities could continue to create turbulence, but market resilience will depend on the exchange platforms’ ability to absorb these shocks and investors’ reactions to these strategic moves. All in all, we are less than a week away from July, <a href="https://www.cointribune.com/en/did-you-know-is-july-historically-the-best-month-for-bitcoin/" target="_blank" rel="noopener noreferrer nofollow">a month considered very good for Bitcoin</a>! So, there is hope!</p>
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3,940 Bitcoins Liquidated by US: Market Stability Threat?

Съдържание

Cointribune EN

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