- Another government-owned Bitcoin stash is being shuffled.
- The US Government may be next in line after Germany’s Bitcoin Dump.
- The German government rocked the crypto industry with major asset sell-offs.
Bitcoin (BTC), the world’s largest crypto asset, has come under significant selling pressure in recent weeks due to major asset movements and dumps by major portfolio holders. Among them was the German government, which sold off a substantial portion of its Bitcoin holdings, causing jitters and price swings across the broader market.
Following a relative period of calm for the industry, another government-owned portfolio has started to rumble.
US Government Shifts Bitcoin
The ongoing recovery for Bitcoin may be under threat once again, as recent asset movements by the United States government raise eyebrows across the industry. On Monday, July 22, 2024, blockchain intelligence platform Arkham Intelligence spotlighted a 58.742 BTC transfer from the government’s wallet to Coinbase Prime Deposit.
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This transaction, valued at approximately $4 million at current prices, occurred around 17:59 UTC and originated from assets confiscated from Ryan Farace, a convicted dark web marketplace drug trafficker.
While the recent transfer brings this particular wallet to a zero balance, the US government still has a significant stash of over 213,200 BTC, worth approximately $14.4 billion. The majority of the government’s portfolio consists of seized assets from convicted illicit actors, one of the most notable being the August 2023 Silk Road 69,370 Bitcoin confiscation.
The US’ latest Bitcoin transfer follows a June 26 transfer of 4,000 BTC to the same Coinbase wallet address, raising speculation that the government may be continuing the sell-off trend initiated by the German government.
Germany’s BTC Dump
For weeks, the German government rocked the crypto industry with major asset movements, escalating from individual transactions of 3,000 BTC to a massive 16,000 BTC daily.
Starting on June 20, 2024, and continuing through July 10, 2024, the transfers involved multiple crypto exchanges and market makers, including Coinbase, Kraken, and Bitstamp, totaling 49,856 BTC within the period.
The sale, reportedly motivated by “risk of a significant loss of value around ten percent or more,” resulted in a total value of $2.9 billion for the government, with each Bitcoin sold at an average price of $57,000.
With the current Bitcoin price at $66,000, the government has missed out on a potential profit of approximately $400.6 million. Germany has since lost its Bitcoin billionaire status, holding a balance of less than 1 BTC at press time.
On the Flipside
- The United States government is one of the largest BTC holders; however, it is surpassed by entities such as Satoshi Nakamoto and Binance, each holding between 500,000 and 1,000,000 Bitcoin.
- At press time, Bitcoin is trading at $66,428, down approximately 2% in the last 24 hours.
Why This Matters
The US government’s BTC transfer marks the latest in a series of significant asset shuffles within the industry. Should the government initiate a large-scale dump like Germany, Bitcoin could be subject to renewed downward pressure, potentially disrupting its recently regained stability.
Find out more about the US government’s BTC stash and previous sell-offs here:
Surprise 4th Largest Bitcoin Holder Plans $130M Selloff
Read this article to find out more about how much flowed into the crypto industry last week:
Crypto Funds Extend 3-Week Positive Streak with $1.4B Inflows
