The U.S. government was seen moving millions in Bitcoin (CRYPTO: BTC) to cryptocurrency exchange Coinbase, sparking speculations about the true motivation behind the transfer.
What Happened: According to on-chain data, a wallet linked to the U.S. government deposited 58.74 BTC, worth nearly $4 million, to Coinbase Prime – a brokerage platform meant for institutional investors.
The US Government deposited another 58.74 $BTC ($3.96M) to #CoinbasePrime 7 hours ago.
— Spot On Chain (@spotonchain) July 23, 2024
So far in 2024, the US government has moved out 6,261 $BTC at ~$62,538 ($392M), mostly after the price rose in late Feb. Among those tokens, 5,999 $BTC ($376M) went to Coinbase.
The US... pic.twitter.com/T2o9YKPY10
It is unclear whether the government's goal is to unload the holdings or if it is simply a routine fund management exercise.
Additional data shows that the funds were seized by the U.S. Department of Justice from Ryan Farace who was convicted for selling Xanax tablets through Bitcoin on darknet marketplaces.
With the latest transfer, the wallet tied to the Farace Seizure has been emptied.
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Why It Matters: The U.S. government has moved out as many as 6,261 state-owned Bitcoins, worth $392 million, in 2024, most of them after the price began to rise in February.
As of this writing, the government still holds more than 213,000 Bitcoin, worth more than $14 billion as per current market prices.
These transfers occur as anticipation grows that Republican presidential candidate Donald Trump may announce Bitcoin as a strategic reserve asset in the upcoming Bitcoin Conference.
Dennis Porter, CEO and Co-Founder of Satoshi Act Fund, has also suggested adding Bitcoin as a reserve asset to stabilize the value of the U.S. dollar.
Price Action: At the time of writing, Bitcoin was exchanging hands at $66,827.55, down 1.56% in the last 24 hours, according to data from Benzinga Pro.
Image via Shutterstock
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