US Government Moves $2B Silk Road Bitcoin to Coinbase

By: Isha Das

In a recent development, the US government moved a mammoth amount of 30,175 Bitcoin, approximately worth $2 billion, to a wallet linked with widely reputed crypto exchange Coinbase on April 2. This intriguing transfer took place at a time when Bitcoin's value took a major dip, dropping to a weekly low of $64,500 before bouncing back above its crucial support level at $65,000.

An initial test transaction was carried out with a minute transfer of $69 equivalent Bitcoin to a Coinbase address, indicating detailed planning before the large-scale transfer. Following this notable transaction, Bitcoin's market value marginally recovered to $65,200, reflecting a drop of 4.7% in the last 24 hours, similar to the pattern observed in the broader market downturn signified by the CoinDesk 20 Index.

The Bitcoins in question are part of a larger cache of approximately 50,000 BTC that the US government confiscated in connection with the infamous Silk Road website. The much-debated move has prompted crypto enthusiasts and investors around the globe to speculate on the government's strategy regarding its remaining Bitcoin reserves. It is uncertain whether this recent amount will be sold immediately or gradually over a period of time.

This development could play a major role in dictating future investment trends and spark broader discussions on the handling of seized digital assets and their potential impact on the crypto market.