In a surprising moment, the U.S. government has made a significant move in the cryptocurrency market. A whopping 9800 Bitcoins, previously seized from the infamous Silk Road marketplace, have been transferred. This unexpected action has left many investors and market analysts speculating about the potential impact on Bitcoin’s price and left holders on the edge of a bearish downturn.
$300 Million Bitcoin On The Way
Approximately 9,800 bitcoins associated with the Silk Road are reportedly being transferred, as indicated by two unverified transactions. This represents the most substantial movement of funds connected to the defunct darknet marketplace in recent months.
A series of transactions involving bitcoins linked to Silk Road were pending confirmation on Wednesday morning. In total, 9,825 BTC (equivalent to $302.2 million) were lined up for dispatch from addresses associated with the Department of Justice (DOJ).
These addresses are routing the bitcoins to unutilized addresses. Given that the DOJ has previously reorganized its Silk Road holdings, it’s premature to conclude that an immediate sale is intended.
Nevertheless, in March, authorities transferred 9,800 BTC directly to the U.S.-based platform Coinbase at a rate of $21,800 per token, yielding $215 million.
Officials stated at that time that they planned to sell an extra 41,500 BTC (valued at $1.27 billion), which had been confiscated from Silk Road hacker James Zhong, in four separate lots.
Should You Hold Bitcoin?
The movement of such a large amount of Bitcoin, especially when linked to a high-profile case like Silk Road, can have a significant impact on the market. The potential sale of these Bitcoins could increase the supply in the market, which, if not matched by demand, could lead to a decrease in Bitcoin’s price.
Back in November 2022, the U.S. authorities took possession of more than 50,000 bitcoins from an individual named James Zhong. Zhong had confessed to executing a wire fraud scheme that involved hacking the same quantity of bitcoins from the infamous Silk Road platform in 2012.
The court documents associated with Zhong’s case, as well as those linked to Ross Ulbricht, the founder of Silk Road, provided insights into related Bitcoin wallet addresses. This information facilitated blockchain analysis companies in tracing these specific addresses.
For Bitcoin holders, the decision to sell should not be taken lightly. While selling now might avoid a potential dip, it could also mean missing out on future gains if the market recovers or continues its upward trend. As the Government will sell Bitcoins in batches, this will likely have no impact or much selling pressure on the Bitcoin price.
However, a fun fact is that the U.S. government seems to be selling Bitcoin on Coinbase, the very platform the SEC labels as an ‘unregistered securities exchange.’
The post appeared first on Coinpedia
