On Tuesday morning, a wallet identified as belonging to the U.S. government transferred 30,175 bitcoins to an account believed to be linked to Coinbase, valued at approximately $2 billion at the current price of $65,000 per Bitcoin. This movement, following a previous government sale of bitcoins in March 2023, has caused a slight dip in the cryptocurrency market, with Bitcoin falling briefly below $65,000 before recovering slightly.
U.S. Government Transfers $2 Billion Worth of Bitcoin to Coinbase Wallet
Washington, D.C. - On Tuesday, March 8, 2023, a digital wallet designated as belonging to the United States government initiated the transfer of 30,175 bitcoins to a recipient wallet identified by Arkham Intelligence as belonging to cryptocurrency exchange Coinbase.
At the time of the transaction, the market value of bitcoin stood at approximately $65,000, placing the total value of the transferred coins at around $2 billion. This represents a significant departure from the government's previous bitcoin sale in March 2023, when 9,861 coins were sold for $216 million.
The transfer originated from a previously undisclosed wallet connected to the seizure of approximately 50,000 bitcoins by the government in late 2022 in connection with the Silk Road darknet marketplace. Following the seizure, the government had maintained possession of the bitcoins, with no public indication of its intentions to sell them.
The sudden and substantial movement of bitcoins by the government has sent ripples through the cryptocurrency market. As news of the transfer broke, the price of bitcoin dipped below $65,000, although it has since recovered slightly, currently trading at $65,200 with a decline of 4.7% over the past 24 hours. The broader CoinDesk 20 Index, which tracks the performance of 20 major cryptocurrencies, has also experienced a comparable decline.
The government's decision to transfer such a large amount of bitcoins has raised questions about its strategy for managing confiscated cryptocurrency assets. Previously, the government had opted to hold seized bitcoins, with no indication of plans to sell them. The reasons for the abrupt change in policy remain unclear.
Meanwhile, the recipient wallet identified by Arkham Intelligence as belonging to Coinbase has not been publicly confirmed by the exchange. Coinbase has not yet commented on the matter.
The transfer of bitcoins by the U.S. government is a significant development in the cryptocurrency landscape, underscoring the increasing prevalence of digital assets within the government's operations and the potential for significant market movements from such actions. As the investigation into the transaction continues, further details are expected to emerge in the coming days and weeks.
