The U.S. government has transferred nearly $4 million worth of Bitcoin to Coinbase, raising questions about potential market impacts amid ongoing fluctuations.
According to on-chain analyst Spot Onchain, the US government, one of the world’s largest Bitcoin holders, moved exactly 58.742 BTC ( $3.96 million) from its internal wallet to Coinbase Prime.
The BTC moved to Coinbase was part of the Bitcoins confiscated in 2021 following the conviction of Ryan Farace, 38, and his father, Joseph Farace, 72. The duo were found guilty of using the dark web to sell Xanax pills and engage in money laundering activities.
The US Government deposited another 58.74 $BTC ($3.96M) to #CoinbasePrime 7 hours ago.
So far in 2024, the US government has moved out 6,261 $BTC at ~$62,538 ($392M), mostly after the price rose in late Feb. Among those tokens, 5,999 $BTC ($376M) went to Coinbase.
The US… pic.twitter.com/T2o9YKPY10
— Spot On Chain (@spotonchain) July 23, 2024
Ryan Farace was initially convicted in 2018, while his father received his sentence from US District Judge Deborah K. Chasanow in January 2024.
How Many Bitcoins Does US Government Hold?
This recent deposit into Coinbase is not an isolated incident.
Еhe US government still holds a substantial $14.6 billion in several digital assets, including $14.21 billion in Bitcoin and significant amounts of ETH, USDT, and WBTC.
Three weeks ago, the US government executed a much larger transfer, moving 3,940 Bitcoin to Coinbase Prime, the exchange’s institutional trading platform.
The US Government moved another 3,940 $BTC ($241M) to #Coinbase Prime ~9 hours ago.
Their last move was sending 2K $BTC ($131M) to Coinbase Prime on Apr 3, 2024, but it did not directly affect the BTC spot price.
Currently, the US Government holds around 213.5K $BTC ($13B).… pic.twitter.com/WszoKCJK95
— Spot On Chain (@spotonchain) June 27, 2024
This involved funds confiscated from convicted drug trafficker Banmeet Singh in early 2024.
In 2019, Singh was arrested in London for distribution charges and extradited to the US in 2023. Following his conviction, he forfeited over 8,100 Bitcoin to the US authorities.
Global Government Bitcoin Liquidations
The US government’s activities coincide with recent Bitcoin transfers and sales from other entities.
For instance, the defunct Mt. Gox exchange transferred approximately $3 billion in BTC to an unlabeled address last week, signaling a next-batch repayment plan for its creditors. This was after the exchange moved over 47,000 BTC ($2.6 billion) to a new wallet, causing Bitcoin price to dip below $55,000 earlier in July.
Meanwhile, the German government sold about 49,800 BTC between June 19 and July 12, coinciding with a drop in Bitcoin’s price to as low as $53,000.
Germany has sold all their 50,000 $BTC, which was worth $3,700,000,000 USD at ATH.
This will go down as one of the worst financial decisions made by a country in a few years now. Germany will kick themselves for selling when they see how much it could have been worth. pic.twitter.com/fVfacxHfnN
— BATMAN ⚡ (@CryptosBatman) July 13, 2024
Despite the significant sum involved in the US government’s transfer, market experts suggest that it’s unlikely to have a substantial impact on Bitcoin’s price.
According to CoinMarketCap data, the transferred amount represents less than 1% of Bitcoin’s total 24-hour trading volume of $44 billion.
This positive outlook is also reflected in the Crypto Fear and Greed Index, a popular metric for gauging market sentiment.
The index stands at 71, indicating a state of “greed” among investors. This suggests that, notwithstanding recent government actions, market participants maintain a bullish stance on cryptocurrencies.