I was looking if someone has posted this news already but I'd share it here. The title speaks for itself but I'll just highlight the bullets from the article.
- The US government transferred some of its bitcoin stash to Coinbase this week.
- The government owns about $2 billion worth of bitcoin in a wallet seized from the dark web's Silk Road.
- About 2,000 bitcoin were transferred to Coinbase, worth about $130 million.
On Tuesday, the US government transferred $65 worth of bitcoin to a wallet address held at Coinbase, according to Arkham Intelligence. The first transfer was seen as a test to ensure proper connection to the prime account at Coinbase.
From there, the US government followed through with a 2,000 bitcoin transfer worth about $131 million to the same Coinbase wallet. Earlier this year, the US government indicated plans to sell about $13 million worth of bitcoin following approval from the US District Court of Maryland.Source:
https://www.businessinsider.in/cryptocurrency/news/the-feds-are-transferring-bitcoin-to-coinbase-from-a-2-billion-crypto-wallet-seized-from-silk-road/articleshow/109043283.cmsLooks like they're preparing for a massive dump and not just that, based on that article the feds are holding more Bitcoin as well from the recovered wallets from hackers and they're about 94,600 Bitcoins.
Reportedly, US government owns approximately 94,600 Bitcoins. So I see the recent transfer of 2,000 Bitcoins as a test transfer before they actually try to sell the majority of their holding. The current value of these 2000 bitcoins is approximately 140 million. While it's a huge amount of money, I don't see a great impact in the market and on the price. The current market cap of bitcoin is 1.39 trillion. So it's just 0.01% of the Bitcoin's market cap. The market can gulp this 140 million bitcoins and no one would know. I don't foresee any sustained price dump to be honest. But I will be happy if I am proven wrong so that I can score some more bitcoins at a lower price.