Key Takeaways
- The US transferred $590M in Silk Road Bitcoin to Coinbase.
- Analysts believe this transfer is unlikely to result in a sale.
- The Bitcoin was seized in 2022 during a Silk Road raid.
The U.S. government recently transferred 10,000 Bitcoin, valued at over $590 million, to a Coinbase Prime wallet.
This movement, linked to assets seized from the infamous Silk Road case, initially sparked speculation that the government might sell the Bitcoin. However, analysts believe this scenario is unlikely.
Ryan Lee
Ryan Lee, chief analyst at Bitget Research, explained that the transfer does not automatically signal an impending sale.
This does not mean that 10,000 Bitcoin have already been sold.
Lee pointed to a recent partnership between the U.S. Department of Justice and Coinbase Prime, which allows Coinbase to safeguard and trade large assets.
Custody purposes
Lee further speculated that the Bitcoin could be transferred for custody purposes rather than for active trading.
He noted that a sale of this size would significantly impact Bitcoin’s market, making a sale improbable under current conditions.
The 10,000 Bitcoin in question were part of 50,000 BTC seized during a 2022 raid on the Silk Road, a defunct darknet marketplace.
This movement follows a larger $2 billion transfer of seized Bitcoin made by the government earlier this year.
