Is the U.S. government selling $2.1 billion worth of Bitcoin?

The U.S. government has part of the 30,175 Bitcoin (equivalent to US$2.1 billion) that resulted from the seizure of the darknet marketplace Silk Road transferred to a Coinbase wallet. Cryptanalysis company Arkham Intelligence reveals that the displaced Bitcoin came directly from accounts linked to the infamous darknet marketplace.

By July 2023, the Justice Department had already monetized some of its Bitcoin assets - more than 9,861 BTC. The resulting US$216 million flooded state coffers, an amount that is only a fraction of the assets now at stake.

On-chain analyst ZachXBT noted that some of the assets - 1,999 BTC (equivalent to just under $140 million) - were transferred as a test to a cryptowallet directly linked to Coinbase. It seems likely that a sale of these BTC is imminent.

However, past experience shows that such sales, while they may cause short-term volatility, are incorporated into the broader market structure in the long run.

The Justice Department and the U.S. Marshals Service have not yet commented on the recent transactions or intentions to sell. But the data on the chain speak clearly: a new chapter in the Silk Road Bitcoin sale saga seems likely.

Such a sale would not be a big surprise and the amount would not be large enough to put permanent pressure on the Bitcoin price. It is known that the sale of the approximately 30,000 remaining BTC from the Silk Road seizure is planned throughout the year.

You can see here how many Bitcoins the U.S. government owns in total.