The post the details of the transfer appeared on BitcoinEthereumNews.com.

The recent movement of 19,800 Bitcoin (BTC) by the US government has caught the attention of analysts and cryptocurrency enthusiasts. This enormous quantity of BTC, valued at about 2 billion dollars, was transferred from a government wallet associated with judicial seizures.  However, the main destination address remains unknown at the moment, fueling speculations and hypotheses about the underlying strategy. The USA context: Seized Bitcoin and transfers to Coinbase The Bitcoin transferred originate from legal seizures carried out in recent years, mainly related to operations against illicit activities on the dark web. The U.S. authorities, once the digital assets are seized, follow precise procedures for their management and sale, in compliance with federal laws. In this case, immediately after the main transfer, two micro-transfers were detected to addresses linked to Coinbase Prime, the institutional custody service offered by the Coinbase exchange.  This detail has led many observers to speculate that the government is preparing a gradual sale of Bitcoin, as has happened in the past. In the United States, assets seized during judicial investigations, including digital assets like Bitcoin, are often liquidated through auctions or direct sales. The proceeds are intended to fund government programs or compensate the victims of crimes.  The gradual sale is a common practice to avoid negatively influencing the market: a massive release of BTC could indeed lead to a sudden reduction in price. According to experts, the recent transfer could be a preparation for future sales, following the model adopted with the Bitcoin seized in the Silk Road case. On that occasion, the assets were liquidated in multiple tranches to minimize the impact on the market. Impacts on the Bitcoin market The transfer of such a significant amount of Bitcoin has inevitably attracted the attention of the market, with many traders and investors monitoring the developments. …

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Filed under: News - @ December 3, 2024 10:23 am