US government moves nearly 10,000 Bitcoin, a threat to the market?

The U.S. government, or also known as the Department of Justice, has moved about $300 million worth of Bitcoin, according to on-chain data. The big question now is whether the U.S. plans to sell this Bitcoin.

On Wednesday (July 12), two U.S. government wallets linked to the darkweb marketplace Silk Road became active. At that time, the Justice Department had seized thousands of Bitcoin. As the on-chain data shows, a total of 9,825.25 BTC were moved in three separate transactions - the value of the Bitcoins? Approximately US$300 million.

Most of the Bitcoin transferred (8,200 BTC) was sent to a single address. From there, the amount was redistributed to 101 individual wallets. So far, we can only speculate about the exact intentions of the U.S. government. It is known that the US basically plans to liquidate the seized BTC holdings. The last time they did this was in March. Then 9,861 Bitcoin were sold, so a similar high amount to the BTC being sold now. On the other hand, the shifts could also only serve to restructure the BTC holdings and test out possible strategies. So there is a lot of room for speculation.

Bitcoin rate reacts

The Bitcoin exchange rate is reacting anything but positively to this news and is down more than 1 percent 24 hours a day. However, fears of major price changes have been exaggerated. Such a sale would not be a big surprise and the amount would not be large enough to put permanent pressure on the Bitcoin exchange rate. It is known that the sale of the approximately 40,000 remaining BTC from the Silk Road seizure is scheduled to take place throughout the year.