In a significant development reported by Arkham Intelligence, the United States government has transferred more than $2 billion worth of Bitcoin, originally seized from the Silk Road dark web marketplace, to an undisclosed wallet. The purpose behind this transfer remains ambiguous at present, with no clear indication from authorities regarding potential plans to sell the cryptocurrency.
This transfer occurred shortly after former President Donald Trump, now the Republican nominee for the upcoming presidential election, announced at the Bitcoin 2024 conference in Nashville his intention to establish a national “strategic Bitcoin stockpile” if re-elected. Trump emphasized that, under his administration, the government would halt the practice of selling seized Bitcoin.
The cryptocurrency market responded swiftly to these developments. Following the news of the transfer, Bitcoin’s value dipped by over 2% within an hour. Initially reaching $70,000 per coin on Monday morning, Bitcoin subsequently declined to $66,000, marking a 4.6% decrease over the past 24 hours. As of the latest updates, Bitcoin has seen a minor recovery and is currently trading at $66,550.
Mike Novogratz, CEO of Galaxy Digital and a prominent figure in the crypto sphere, criticized the timing of the government’s move. He pointed out that while authorities frequently transfer seized Bitcoin among wallets and custodians, such actions do not necessarily signify an imminent intention to liquidate these assets, despite past instances of such sales.
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