Bitcoin drops after transfer of confiscated funds to Coinbase
Date: 2024-06-27 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Bitcoin (BTC) came under pressure again as the price fell to $60,000 after the US government transferred seized funds linked to Silk Road to a Coinbase address. The move has raised concerns among traders and investors who fear a significant sale of the cryptocurrency could be taking place, pushing prices down in the market.
Transfer of Confiscated Funds
On Wednesday, Bitcoin fell to $60,000 after a report that a wallet associated with the US government transferred about 3,940 BTC to a Coinbase PRIME address. The funds, valued at $240 million, were originally seized from drug trafficker Banmeet Singh and secured by the court in January 2024, Arkham Intelligence reported.
This transfer is part of a larger Bitcoin seizure related to Silk Road activities. At the end of 2022, the US government seized approximately 50,000 BTC associated with this notorious website. In April 2023, the government made a similar move by moving $2 billion worth of Bitcoin, which also put pressure on digital markets. The last confirmed government sale occurred in March 2023, when 9,861 BTC were sold for $216 million.
Market reaction
News of the funds transfer caused an immediate reaction in the market. Bitcoin, which previously struggled to recover from its Mt. Gox, fell back below $61,000. As a result, the price of BTC dropped to $61,100, showing a decrease of 1% over the past 24 hours. The broad CoinDesk 20 index also fell by about the same amount. Ether (ETH) was also hit by the news, falling 1.6% on the day.
The US government's transfer of confiscated funds to Coinbase has a significant impact on the cryptocurrency market. Traders and investors are closely monitoring the situation, fearing the possible sale of large volumes of Bitcoin. The impact of this event highlights the importance of government action on cryptocurrency market dynamics, causing volatility and uncertainty among market participants
