- U.S. government’s $2 billion Bitcoin transfer raises investor concerns, triggering a 2% BTC price dip.
- Silk Road legacy and political ties, including Ross Ulbricht’s case, keep the narrative relevant.
The U.S. government has moved nearly $2 billion worth of Bitcoin seized from the infamous Silk Road marketplace. This development mirrors the U.S. government’s prior transfer of $2 billion in Bitcoin from the Silk Road stash, as previously reported by CNF. The move has caused significant market concerns, potentially leading to price fluctuations.
Blockchain data revealed that 19,800 BTC were transferred to two Coinbase wallets after briefly passing through another wallet. In a recent tweet on X by Arkham, the intelligence platform flagged the transaction, stating:
Alert: U.S. government moving $1.92 billion BTC to new address.
Address: bc1q0av33ktzrkjps8exjex5gtv98vx225uqmzhspm.
The Silk Road, which facilitated illegal transactions, was shut down in 2014. This stash is linked to James Zhong, who pleaded guilty to wire fraud for stealing 50,676 BTC from the platform in 2012.
Bitcoin Price Dips Amid Investor Uncertainty
Bitcoin’s price dropped over 2% within 24 hours following the transfer, now trading around $95,250. Large government moves of seized Bitcoin often spark speculation about potential sales, unsettling investors.
However, the coins may not immediately hit the market, as Coinbase Prime now manages digital assets for the U.S. Marshals Service, reducing concerns about imminent liquidation effects.
Historical Context and Political Connections
This marks one of the largest Bitcoin seizures in history, highlighting the enduring legacy of the Silk Road case. On the political front, former President Donald Trump has promised to pardon Ross Ulbricht, the founder of Silk Road, if reelected, adding a layer of intrigue to the narrative surrounding these funds.
On a positive note, CNF previously revealed another instance of the U.S. government transferring nearly $600M in seized Silk Road Bitcoin to Coinbase. In that case, a BTC crash to $49,000 was anticipated. As of now, according to CoinMarketCap data, Bitcoin (BTC) is trading at $94,975.73, reflecting a 0.10% daily decline but a 3.02% weekly increase.
