Bitcoin dips to $66K as US moves $2 billion in seized BTC to unidentified wallets
The unanticipated action has caused investors to worry about a possible sell-off.
On July 29, after the US authorities transferred $2 billion worth of seized bitcoin (BTC) connected to the Silk Road marketplace, the price of bitcoin fell precipitously to about $66,300.
According to Arkham Intelligence, on July 29, 29,800 BTC were transferred from a US government-owned wallet to an address that was unknown and had no previous transaction history.
Subsequently, the address transmitted 10,000 BTC and 19,800 BTC to two distinct addresses. The unanticipated action has caused investors to worry about a possible sell-off.
The 10,000 BTC move, which is estimated to be worth $670 million, is probably a deposit to an institutional custody or service provider, according to Arkham analysts.
In the past, these big moves frequently come before asset sales, which unsettles the market. This time was no exception, as the value of Bitcoin fell 1.6% over the previous day to a low of $66,360, roughly 5% below its session high of $70,000.
According to data from CryptoSlate, the flagship cryptocurrency has subsequently regained some of the losses and was trading at $67,350 at the time of writing.
Two days following the Trump speech
This transfer’s timing is especially noteworthy because it was revealed two days after Republican presidential nominee Donald Trump, the former president, declared that, should he win, he intended to create a “strategic national Bitcoin stockpile.”
The government’s pledge to “keep 100%” of the 210.000 Bitcoin it now owns, made by Trump at the Bitcoin 2024 conference in Nashville, increased market sensitivity to government actions.
The speech set off a surge over the weekend, culminating with Bitcoin exceeding $70,000 before a decline, when Senator Cynthia Lummis announced legislation aimed at accomplishing the same.
Requests for comment regarding whether the transferred Bitcoin is meant for sale have not yet received a response from the US Department of Justice. Nonetheless, Coinbase Prime was just given a contract by the US Marshals Service (USMS) to handle and sell its large-cap cryptocurrency, indicating that the move may not be an indication of an impending sale.
