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US Government Continues Selling Bitcoin Holdings, Potentially Impacting Market Dynamics

Blockchain data suggests that the United States government is poised to offload more of its substantial Bitcoin (BTC) holdings, potentially adding further selling pressure to the cryptocurrency market.

According to insights from on-chain analyst ZachXBT, government-controlled Bitcoin associated with the Silk Road darknet marketplace recently initiated a minor transaction to Coinbase, a notable crypto exchange utilized by the government for previous coin sales.

Following this transaction, the government’s wallet transferred 1999 BTC to Coinbase Prime, with a value of $139 million at the time of transfer. Presently, the government’s primary address for its Silk Road Bitcoin holdings contains 29,799 BTC, amounting to approximately $1.96 billion.

This move comes after the government seized over 50,000 BTC linked to Silk Road from the marketplace’s hacker, James Zhong, in late 2021. Since then, the government has been gradually selling off these coins, with its most recent sale comprising 9000 BTC in July 2023.

Remarkably, the government’s sales have had minimal discernible impact on Bitcoin’s price dynamics. Notably, its initial sale of 9,861 BTC in March 2023 preceded a 25% surge in Bitcoin’s value before the Department of Justice officially confirmed the transaction.

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