Bitcoin (BTC) Price Dips as U.S. Moves $240M in Seized Silk Road Funds to Coinbase

Concerns are rising over a potential sell-off following the government's transfer of 3,940 BTC, originally from trafficker Banmeet Singh.

New updates have emerged regarding the US government's sale of Bitcoin (BTC) connected to the Silk Road narcotics marketplace.

According to Arkham Intelligence, the US government has transferred $240 million worth of BTC to Coinbase Prime, out of the total $1.18 billion seized from the Silk Road. This BTC was forfeited by narcotics trafficker Banmeet Singh during his trial in January 2024.

As reported by Collin Brown, Bitcoin dropped after the U.S. government moved $240 million in seized Silk Road BTC to Coinbase.

With the US government transferring 3,940 BTC, concerns are rising over a potential sell-off. The market reacted nervously, causing BTC to dip below $61K.

Bitcoin tumbles as U.S. moves $240M in seized Silk Road #BTC to Coinbase.

Concerns rise over potential sell-off after government's transfer of 3,940 BTC, originally from trafficker Banmeet Singh.

Market reacts nervously, BTC dips below $61K. pic.twitter.com/MC3QrMaL53

— Collin Brown (@CollinBrownXRP) June 27, 2024

As highlighted by Yahoo Finance, the US government has been actively seizing and moving Bitcoin related to the Silk Road.

In late 2022, they seized approximately 50,000 Bitcoin, and the latest significant transfer occurred on April 2, 2024, when $2 billion worth of Bitcoin was moved, impacting the market price.

Impact on Bitcoin Price

The movement of seized Bitcoin by the US government has notably affected Bitcoin’s price. The latest transfer caused Bitcoin to drop to a low of $60,800.

Even with attempts to recover from previous slumps, Bitcoin and other cryptocurrencies like Ether experienced declines following the news.

However, the latest development seems to be triggering a slight positive trend for the BTC price.

At the time of writing, according to the latest update from CoinMarketCap, Bitcoin (BTC) is priced at $61,329.52, showing a modest increase of 0.09% in the past day and a decrease of 6.69% in the past week.

Is a Massive Sell-Off on the Horizon?

The market is still on edge, awaiting further developments regarding the potential sell-off of the seized Bitcoin.

As the US government continues to seize and move Bitcoin connected to the Silk Road, it remains to be seen how the market will respond to any upcoming large-scale sales of this cryptocurrency.

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