According to blockchain data, there are indications that the United States government is considering selling more of its substantial Bitcoin (BTC) holdings, which could add further selling pressure to the cryptocurrency market.
On Tuesday, on-chain investigator ZachXBT highlighted a small transaction from government-controlled Bitcoin associated with Silk Road to Coinbase, a crypto exchange previously utilized by the government for coin sales. Following this, the government’s wallet transferred 1,999 BTC to Coinbase Prime, valued at $139 million.
As of the latest data, the main address housing the government’s Silk Road Bitcoin stash contains 29,799 BTC, valued at $1.96 billion. These bitcoins were initially seized from Silk Road’s hacker, James Zhong, in late 2021. The government began selling these coins in increments last year, with the most recent sale being a 9,000 BTC transaction in July 2023.
Despite these sales, the impact on Bitcoin’s price has been relatively limited thus far. Interestingly, the first sale of 9,861 BTC in March 2023 preceded a 25% surge in Bitcoin’s price before the Department of Justice (DOJ) could officially confirm the sale.
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