The transfer to Coinbase Prime, the exchange’s institutional platform, was noticed by blockchain experts, who found a blockchain transfer at 1pm ET with a fee of just $18.
There are differing views on where the government obtained the transferred Bitcoin. According to the Telegram channel of on-chain investigator ZachXBT, the funds were part of the Bitcoin that was recovered from the “Silk Road” hack.”
The Justice Department seized 50,676 BTC after the shutdown of the infamous darknet marketplace in 2013, and it has been selling off these coins in batches.
However, blockchain data platform Arkham Intelligence claims that the coins sold recently were not from either of those sources.
Banmeet Singh $150 Million Bitcoin Withdrawn
Banmeet Singh was a drug kingpin who pleaded guilty earlier this year to operating an international narcotics ring from his home for several years. As part of the plea agreement, Singh agreed to turn over $150 million worth of his crypto, which has appreciated due to the increase in Bitcoin’s price since that time.
Arkham reports that the government still owns approximately $13 billion worth of BTC, making it one of the largest Bitcoin owners on Earth, second only to MicroStrategy.
Similarly, Germany sold $170 million from its $2.8 billion Bitcoin stash last week. According to Arkham’s data, Germany also moved tens of millions more to exchanges Kraken and Coinbase on Tuesday.
The government’s sales have contributed to a wave of sell pressure on Bitcoin this month from Bitcoin miners and large holders, while on-chain analysis suggests that new demand for Bitcoin has been decreasing. Bitcoin is currently trading for $60,775, down 13% for the month.
BTC Hits $64,000: Whale SellOff Bitcoin Assets
The cryptocurrency market is experiencing chaos due to the recent drop in prices. Over the past two weeks, long-term miners and holders of Bitcoin (BTC) have sold off a significant portion of their assets.
These large holders, known as crypto whales, are not showing signs of buying back the cryptocurrency. As a result, the market is experiencing a lack of significant buying activity and demand.
Traders are hesitant to increase their Bitcoin holdings and there is little indication of strong demand growth from large investors (whales).
