U.S. Government’s $1B Bitcoin Transfer Has Spooked Investors

Bitcoin fell below an important limit of $22k, and this is shaking investors’ trust these days. Check out the latest reports about all this below.

According to the latest notes coming from CoinDesk, it seems that the U.S. authorities transferred $1 billion worth of bitcoin (BTC) recovered from a dark web hack to new wallet addresses, including one owned by Coinbase, on Wednesday, stoking investor fears that intense sell pressures could drive down the token’s price.

“Authorities moved the bitcoin in three transactions, according to data from blockchain security firm PeckShield. Nearly 10,000 bitcoin were sent to Coinbase-controlled wallets, while roughly $41,000 tokens were directed to government-controlled wallets,” the sane online publication noted so far.

#PeckShieldAlert 49k $BTC (worth $1 Billion) from wallets related to US Government law enforcement seizures have been transferred to #Coinbase (~9.8k $BTC, worth $217M), bc1qf2…fsv (30k $BTC) & bc1qe7…rdg (9k $BTC) #SilkRoad pic.twitter.com/4MzlvDzkut

— PeckShieldAlert (@PeckShieldAlert) March 8, 2023

They also made sure to tell their readers the fact that although concerns about the tokens’ sale on the open market may be overblown, fears that bitcoin prices could take a hit are not entirely unjustified, says Conor Ryder, a researcher at crypto markets analysis firm Kaiko.

“The movement of Silk Road bitcoin to Coinbase is almost definitely being done with the intention to sell [the recovered tokens], so one has to wonder if bitcoin is due for some short term headwinds,” Ryder told CoinDesk.

#PeckShieldAlert ~51,351.9 $BTC of the Silk Road Crime Proceeds were seized by the US Government in November 2021 and March 2022 and consolidated in 2 addresses: bc1q5s…0ch and bc1q2ra…cx7 pic.twitter.com/NyhqDeA3N5

— PeckShieldAlert (@PeckShieldAlert) March 8, 2023

Regarding the price of Bitcoin today, at the moment of writing this article, BTC is trading in the red, and the price of the king coin is now $21,632.