Bitcoin (BTC) retreated towards $60,000 on Wednesday following reports that a U.S. Government-controlled wallet transferred approximately $240 million worth of seized BTC to a Coinbase Prime address. Traders reacted with apprehension amid fears that these digital assets could soon enter the market.
According to Arkham Intelligence’s social media post, the wallet moved 3,940 BTC originally seized from narcotics trafficker Banmeet Singh, forfeited during a January 2024 trial. This move echoes previous actions by the government, which seized about 50,000 BTC linked to the Silk Road website in late 2022, leading to significant market pressures. The government’s last confirmed BTC sale occurred in March 2023, involving 9,861 coins sold for $216 million.
Bitcoin attempted a minor recovery from recent declines linked to Mt. Gox earlier in the week but slipped back below $61,000 upon the news. As of the latest update, Bitcoin traded around $61,100, marking a 1% decline over the past 24 hours, with the broader CoinDesk 20 Index reflecting similar losses. Ether (ETH) also felt the impact, dropping 1.6% on the day alongside Bitcoin’s movements.
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