The US government’s law enforcement seizures of Bitcoin, including from the Silk Road marketplace, have started to move, causing concerns over a potential sell-off. On March 8, blockchain analytics provider Glassnode reported that the government’s estimated wallet balance dropped to 125,600 BTC as 18,860 coins worth an estimated $418 million were on the move.
Silk Road Bitcoin Stash on the Move
According to Glassnode, an estimated 9,861 BTC worth around $219 million were sent to Coinbase, seized from the Silk Road hacker. In November 2022, James Zhong pleaded guilty to wire fraud, nine years after stealing more than 51,000 BTC from the dark web platform Silk Road. An affidavit supported the government’s seizure of the massive stash worth more than $3.3 billion at the time.
Impact of BTC Hitting Markets
Bitcoin prices have already lost 1.5% since the move, and concerns over a potential selloff have mounted. However, the slide is more likely to be linked to the Federal Reserve’s latest action, with Fed Chair Jerome Powell suggesting an increase in interest rates beyond original estimates. This makes cash savings more attractive than risk-on assets such as crypto, resulting in a slide of 1.3% in total market capitalization to $1.06 trillion. BTC is down 1.6% on the day, trading at $22,125 at the time of the press.
What’s the Conclusion?
In conclusion, the US government’s law enforcement Bitcoin wallets are on the move, leading to concerns over a potential sell-off. The Silk Road connection adds another layer of interest, but the impact on BTC markets may be more linked to the Federal Reserve’s latest action, with higher interest rates making cash savings more attractive than crypto.
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