The U.S. government went against Trump and transferred $2 billion in Bitcoin, causing the price of Bitcoin to plummet

The U.S. government transferred $2 billion worth of seized Bitcoin on Monday, causing a drop in Bitcoin prices. Blockchain data from Arkham Intelligence revealed that a wallet labeled "U.S. Government: Silk Road DOJ" sent 29,800 BTC, originally tied to the Silk Road dark web marketplace, to an unknown address.

The transfer address is suspected to be institutional custody or service deposit

Out of the total transferred, 10,000 BTC, valued at $670 million, was moved to a different address, suspected by Arkham analysts to be an institutional custody or service deposit. Such movements often indicate upcoming asset sales, raising concerns among investors.

Bitcoin price drops after massive transfer from US government

Following the transfer, Bitcoin's price fell below $67,000, down from a session high of $70,000 earlier in the day.

At the time of reporting, Bitcoin was trading at $66,432 a 3.24% decline over the past 24 hours.

The broader CoinDesk 20 Index remained flat during the same period.

The U.S. government’s massive transfer of Bitcoin is contrary to Trump’s views

The timing of the U.S. government's move coincided with former President Donald Trump's pledge at the Bitcoin 2024 conference in Nashville. He promised to create a "strategic national bitcoin stockpile" if elected, adding another layer of intrigue to the situation. The U.S. is currently the largest holder of Bitcoin among world governments, with $13.9 billion worth of the cryptocurrency.

Global Bitcoin Holdings

China follows closely with $13 billion, while Germany recently sold off its Bitcoin holdings, originally acquired from a piracy website seizure. This sale has been criticized by some, including a German parliament member, for not capitalizing on Bitcoin's potential as a hedge and diversification tool.

Details of the Seized Bitcoin

The 28,000 BTC moved by the U.S. government was part of assets seized from Silk Road. Initially confiscated in 2020, the Bitcoin was worth over $1 billion at the time. The U.S. government's crypto portfolio still holds more than $12 billion in Bitcoin, according to Arkham Intelligence.