[Bitop Review] Wallets allegedly linked to US government move 3,940 bitcoins to Coinbase. Bitcoin Dropped Below $61,000.

In a move that could signal another round of Bitcoin auctions, the U.S. government transferred 3,940 BTC (worth approximately $240 million) to Coinbase Prime early Thursday morning, according to data from crypto intelligence platform Arkham.

Bitcoin Price Dips Below $61,000

The transfer caused Bitcoin’s price to briefly drop below $61,000, reaching a low of $60,712 at 3 am. As of this writing, Bitcoin is trading at around $60,930, down 1.69% over the past 24 hours.

While the exact purpose of the transfer remains unclear, the move to Coinbase Prime, a popular exchange for institutional investors, suggests that the U.S. government is preparing to sell these Bitcoin holdings. However, the exact timing of any potential sale has yet to be announced.

CryptoQuant CEO: Less likely to impact the market.

Despite the potential selling pressure, some analysts believe the impact on the Bitcoin market will be muted. Ki Young Ju, CEO of data analytics platform CryptoQuant, stated on Twitter and said it’s less likely to impact the market.

U.S. Government Allegedly Holds Around 213,000 Bitcoin Reserves

The U.S. government has a history of seizing and selling Bitcoin. Since 2014, it has auctioned off at least 195,091 BTC, generating over $366 million in proceeds. U.S. officials have previously stated that they intend to sell these assets gradually to minimize market impact.

Jarod Koopman, Director of the IRS’s Cyber and Forensic Services, has explained:

“We’re not market participants. Our actions are largely dictated by the timing of legal proceedings.”

While analysts like Ki Young Ju downplay the immediate impact of this latest Bitcoin transfer, the size of the U.S. government’s holdings (around 213.546 thousand BTC, making it the third-largest Bitcoin whale) and the overall market downturn could amplify any potential selling pressure. Investors should continue to monitor the situation closely.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.