The United States government has shocked the crypto market as it prepares to potentially sell $246 million worth of Bitcoin.
This seismic event is could have been precipitated by the recent transfer of more than 9,825 BTC linked to Silk Road addresses, which are now suspected to be under the control of the US Department of Justice.
Are These Early Signs of a Bitcoin Sell-Off?
In a meticulous operation, the US Department of Justice (DOJ) appears to have moved 8,200 BTC to Coinbase. The federal agency used a labyrinthine funding path, shuffling the assets through the Bitcoin address 361yogPsasxJz6JAaFskmWZes14Gs38ikj.
The DOJ dispersed the 8,200 BTC across over 100 different Coinbase addresses, with each address receiving 79.2 BTC.
This complex scheme may culminate in the liquidation of these BTC. It is worth noting that the Bitcoin amassed equates to an astronomical $246 million, a figure calculated based on current market price of $30,000.
US Government Bitcoin Holdings. Source: CryptoQuant
While this news may send tremors through the crypto market, experts, such as those at on-chain analytics firm CryptoQuant, remind the community that these government actions do not necessarily correlate to a dip in Bitcoin’s price.
“It is important to be aware that the impact of news may not always align with your expectations. If you try to overreact to such news and anticipate a substantial market crash, you could end up with significant losses,” said CryptoQuant.
This high-profile disposal of Bitcoin by the US government will be a test. Especially for the stability of the crypto market, which is going through a liquidity crisis.