Earlier today, the U.S. government moved a huge amount of Bitcoin (BTC) to an unknown wallet. This movement raised worries among investors which caused the digital asset to plummet.
 The Unexpected Transfer
Arkham Intelligence, a blockchain data intelligence firm, disclosed that over $2 billion worth of BTC was transferred from the U.S. government coffers to a new wallet.
The digital asset was seized from the Silk Road, an online dark web marketplace known for trading illegal drugs. The website was shut down in 2014 and the authorities seized the coins used on the platforms. This fund transfer came shortly after presidential candidate Donald Trump pledged not to sell any seized BTC if elected.
Speaking at the concluded Bitcoin Conference 2024, the pro-crypto candidate revealed his plans to establish a strategic Bitcoin reserve.Â
Sell-off Fears Rattles Bitcoin Market PriceÂ
The intention behind today’s Bitcoin transfer remains unclear, however, it sparked sell-off fear among members of the crypto community on X. After the news, the price of the digital asset dropped from $70,000. As per CoinMarketCap data, it is now trading at $67,286.22, down by 1.21% in the last 24 hours.Â
Adam Cochran, a venture capitalist, reassured users in an X post. He said the recent transfer of the sized digital assets may not necessarily mean a sell-off. He guessed that the unknown wallet might belong to Coinbase crypto exchange. This was because the U.S. Marshals Service awarded the exchange a contract to manage its large crypto holdings.Â
You guys freak out any time large coins move.
Remember that US Marshall’s *just* signed with Coinbase Prime to start custody of government held digital assets? https://t.co/wwxoFepggH pic.twitter.com/WlroZvrblm
— Adam Cochran (adamscochran.eth) (@adamscochran) July 29, 2024
Furthermore, Cochran highlighted how people tend to react strongly whenever significant amounts of coins are moved. However, the crypto community could not help but panic due to the expriences recorded with the sell-off actions seen by the German government last month. The massive BTC offloads led to a downward trend in price then, affecting market confidence.
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