The United States has transferred 3,940 seized Bitcoin (BTC) from Silk Road to Coinbase Prime, sparking concerns in the market. The move, involving $240 million worth of BTC originally confiscated from narcotics trafficker Banmeet Singh in January 2024, has unsettled investors. Collin Brown’s tweet about the transfer highlighted Bitcoin’s tumble as a result, with fears mounting over a potential sell-off. Following the transaction, Bitcoin’s value dipped below $61,000, reflecting nervous market sentiment.
Yahoo Finance noted the US government’s ongoing seizure and movement of Silk Road-related Bitcoin, including a significant transfer on April 2, 2024, when $2 billion worth of BTC was moved, impacting market prices. These actions have consistently influenced Bitcoin’s value, with the latest drop attributed to the recent transfer. Despite attempts at recovery, Bitcoin and other cryptocurrencies like Ether experienced declines post-announcement.
However, amidst the market turmoil, there’s been a slight upward trend in Bitcoin’s price, currently sitting at $61,329.52. This represents a marginal increase of 0.09% over the past day but a decrease of 6.69% over the past week, according to CoinMarketCap.
Investors are now anxiously watching for further developments, particularly regarding the possibility of a large-scale sell-off of seized Bitcoin, which could have broader implications for the market.
