Thomas Daniels
Bitcoin experienced a slight decline on Monday as the U.S. government transferred a substantial portion of its Bitcoin holdings, originating from the Silk Road seizure. According to Arkham, a blockchain analytics firm, approximately $2 billion worth of Bitcoin was moved to a new address. The transactions occurred in two tranches, one valued at around $669 million and the other at approximately $1.33 billion.
The destination of these funds remains unclear, but Arkham speculates they were transferred to an institutional custodial service. Coinbase is suggested as a probable custodian, though this has not been confirmed. The specific management of the new wallet address is yet to be determined. Following the transfer, Bitcoin’s price fell by about 1%, trading below $67,600, after briefly reaching $70,000—the highest since May.
The Bitcoin community quickly responded to the news, with notable figures like Tyler Winklevoss, co-founder of Gemini, highlighting the timing of the transactions. They coincided with former President Donald Trump’s recent declaration that, if re-elected, he would halt all government Bitcoin sales. This statement has fueled speculation regarding the current administration’s intentions with the seized Bitcoin reserves.
At the Bitcoin 2024 conference in Nashville, Trump emphasized his intention to convert the seized Silk Road Bitcoin into a strategic national reserve. He also promised to dismiss SEC Chair Gary Gensler, garnering strong support from the cryptocurrency community. Additionally, Trump’s campaign has spotlighted the case of Ross Ulbricht, the creator of Silk Road, advocating for his release—a stance that resonates with many in the Web3 community.
