U.S. Moves Billions in Seized Crypto; Sparks Bitcoin Price Concerns

Coin Edition -

• The U.S. government moves billions in seized crypto, including BTC and ETH, to new wallets.
• Concerns rise over potential government sale of seized Bitcoin after large transfer.
• Bitcoin recovers after price dip following government transfers but faces resistance near $100K.

The U.S. government has transferred billions of dollars worth of seized cryptocurrency, including Bitcoin and Ethereum, into new wallets, raising questions within the crypto community about the potential market impact.The assets, confiscated during investigations involving major crypto cases like FTX and the Silk Road marketplace, were moved to several addresses. These transfers follow the FTX bankruptcy in November 2022, triggered by allegations of fund misuse by the exchange and its trading arm, Alameda Research.

FTX and Alameda Transfers: What We Know

On December 3, blockchain analytics firm Arkham Intelligence identified significant movements of crypto assets linked to the U.S. government. These included 5,024 ether (ETH), valued at approximately $18 million, sent to two wallet addresses beginning with “0x9cd” and “0x9ac.” Alongside Ethereum, the government moved additional assets such as $13 million in Binance USD (BUSD), $1.5 million in SHIBA INU (SHIB), and smaller amounts of Compound (COMP), Numeraire (NMR), and Wrapped Bitcoin (WBTC).In a separate move, the U.S. government transferred 20,000 Bitcoin (BTC)—worth about $1.92 billion—on Monday. The Bitcoin, originally seized during investigations of the Silk Road marketplace, represents a significant portion of government-held cryptocurrency.Read also :Arkham Intelligence Reveals U.S. Government’s Bitcoin Transfer to Coinbase (NASDAQ:COIN)

ALERT: US GOVERNMENT MOVING $1.92B BTC TO NEW ADDRESS

Address: bc1q0av33ktzrkjps8exjex5gtv98vx225uqmzhspm pic.twitter.com/JSELsjFg5T— Arkham (@arkham) December 2, 2024

The scale of these movements has sparked debate within the crypto market. Some analysts fear that the government may liquidate these holdings, potentially driving down prices.Following the transfers, Bitcoin’s price briefly dipped to $93,600 but rebounded above $96,000. However, the cryptocurrency faces resistance around the critical $100,000 mark.Despite these transfers, the U.S. government retains substantial crypto reserves, including 188,309 Bitcoin valued at $18.12 billion, along with Ethereum and stablecoins like USDT. The market remains on edge, closely monitoring for signs of further asset liquidations that could influence cryptocurrency prices. The post U.S. Moves Billions in Seized Crypto; Sparks Bitcoin Price Concerns appeared first on Coin Edition.

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