The US government has just transferred approximately 10,000 Bitcoin (BTC) from wallets linked to the dark web marketplace Silk Road. This is one of the transfers made in the past week that has contributed negatively to the current outlook for the underlying asset.
Unending US Government Bitcoin Transfers
The United States of America has one of the largest stockpiles in the nation. Most of the BTC it holds came from seizures from the dark web marketplace as part of a criminal crackdown. For unclarified reasons, the fund administrators have continued to move different tranches of the coin for months.
The fund movement aligns with that of Germany which emptied its 50,000 BTC stash in July after series of selloffs.
As showcased by data curation platform HODL15Capital on X, the US government sent a total of 10,000 Bitcoin in two tranches. The first and relatively smaller transfer featured a 0.00000546 BTC. The second include a 9999.9999 Bitcoin sent 9999.9990 BTC to “33JEE….4jnoE.”
The stash had a market value of $594 million at the time of transaction. The transferred Bitcoin went to a wallet linked to Coinbase Prime. What remains a mystery is whether the US government plans to sell the assets or hold them in the recipient’s wallet.
Towards the end of July, the US government made an even larger transfer. A total of 29,800 BTC left the account labeled “U.S. Government: Silk Road DOJ Confiscated Funds (bc1qj)” in two tranches. At the time, the transferred Bitcoin was worth over $2 billion.
Shunning The Advise to HODL?
Noteworthy, Donald Trump and a few other politicians have a plan to preserve the asset. Political BTC proponents pointed to the fact that the US government need to desist from its Bitcoin dumping moves. On the contrary, Trump proposed a strategy of HODLing BTC for about 20 years to repay the US national debt.
While he has received some backlash for coming up with such solution, the Republican Presidential candidate is confident in what the future holds for BTC. Senator Cynthia Lummis is also a core proponent of this idea, leading her to put out a legislation to that effect.
Currently, the government is focused on its Treasury buyback program. The aim is to purchase $50 billion worth of Treasury securities by the end of October. Notably, this strategy and the prospects of cooling US CPI inflation data might buoy the country’s financial outlook in the mid term.
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: