US Government Transfers Confiscated Bitcoins: Impact and Market Reaction

Bittime - According to a report from Arkham Intelligence, the United States government has recently transferred over $2 billion worth of Bitcoin seized from the Silk Road black market to an unknown wallet. Until now, there is no certainty regarding whether the US government intends to sell the Bitcoins that have just been transferred.

Reaction to Announcement

The transfer comes two days after former President Donald Trump, now the Republican presidential candidate in this year's election, expressed his commitment to the Bitcoin 2024 conference in Nashville. Trump promised that if elected, he would create a “national Bitcoin strategic reserve” and stop the sale of Bitcoin confiscated by the government.

News about this transfer immediately influenced the market. Bitcoin prices fell more than 2% within an hour of the announcement. On Monday morning, Bitcoin briefly reached a price of $70,000 per coin, but soon fell to $66,000, with a decline of 4.6% in the last 24 hours. Currently, Bitcoin recovered slightly and is trading at $66,550.

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Criticism and Opinion

Crypto entrepreneur and CEO of Galaxy Digital, Mike Novogratz, criticized the timing of this government move. He pointed out that the federal government often moves Bitcoins it has confiscated from criminals between wallets and custodians. While authorities have sold seized crypto in the past, these transfers do not necessarily indicate an intent to sell the assets.

Long Term Impact

Government policies regarding confiscated Bitcoins can significantly impact the crypto market. Sales or even just announcements of large Bitcoin transfers can create high volatility. This also highlights the uncertainty that often surrounds the crypto market and how political decisions can impact digital asset prices.

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Conclusion

In closing, while these Bitcoin transfers may simply be administrative measures or part of asset management, their impact on the crypto market and investor sentiment remains a major concern. Market players will continue to monitor further developments to understand the full implications of this action.

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