After Bitcoin (BTC) fell back towards $60,000 on Wednesday, another wallet was put in the spotlight. This time it was one of the US Government, and a bigger whale than that of the German government. As $240 million worth of seized BTC was sent to a Coinbase Prime address.
Where does the Bitcoin of the US Government come from?
Some 3,940 bitcoin originally seized from a Silk Road vendor was moved by the wallet. Other bitcoin came from online narcotic sites, which include BTC that was originally seized from narcotics trafficker Banmeet Singh, and forfeited at trial in January 2024.
What Is the Bitcoin Address of the U.S. Government?
The Bitcoin address of the U.S. Government that holds this gigantic amount of seized crypto is bc1qrl0epuu42c7pvzhsrghy7qdkkw5xevazznaprq.
Their portfolio reveals a substantial holding with a total value approximating $13.5 billion (at this time). This is where you are trading against.
What Are the Top Holdings in the U.S. Government’s Cryptocurrency Portfolio?
- Bitcoin (BTC): Portfolio Value: $13.05 billion. As the premier cryptocurrency, Bitcoin can be bought on Bitvavo.
- Ethereum (ETH): Portfolio Value: $182.91 million. Ethereum, driving innovations in dApps and DeFi, can be purchased on Bybit.
- Tether (USDT): Portfolio Value: $121.73 million. Tether, a stablecoin tied to the US Dollar, is available on exchanges like Bitvavo. Check out other reputable exchanges here.
Distribution Details:
The US Government has already made significant deposits to trusted platforms with the total deposits being $54.02 million across various exchanges, with Kraken ($34.72 million) and BlockFi ($17.38 million) being the predominant platforms.
Conversely, the Feds had withdrawn from Binance ($170.01 million) and Binance US ($27.05 million).
What Are the Latest Significant Transactions?
The latest transaction, visualized on the blockchain, is that of Bitcoin (BTC).
With the Transaction Details: Recently, there was an inflow of 3.94k BTC valued at $241.22 million. These transactions were labeled as “Banmeet Singh Seized Funds” and “Coinbase Prime Deposit,” which confirms the latest trend of news.
How Has the U.S. Government’s Past Bitcoin Sales Affected the Market?
The last movement by the government—which in late 2022 seized roughly 50,000 bitcoin related to the Silk Road website—was $2 billion worth of bitcoin on April 2, which at the time also put pressure on digital markets. The last confirmed sale by the government was in March 2023, when it unloaded 9,861 coins for $216 million.
What can you do with this information of the US government holding cryptocurrency?
Monitoring the U.S. Government’s cryptocurrency transactions can provide valuable insights, especially when large amounts of Bitcoin are moved or sold.
For traders, this means there’s an opportunity to strategize accordingly; for instance, if there’s an indication that the government might offload a large sum of Bitcoin, it could be a cue to consider shorting on platforms like Bybit and MEXC.
On the other side, the substantial involvement of the U.S. Government in cryptocurrencies implies that these exchanges are likely operating under regulatory scrutiny, making them more reputable and reliable for trading activities.
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