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.
Yeah there is nothing to worry about that. As far as I know, they have announced it in the past that they are going to sell the seized Bitcoins in portions within a certain period, and it's probably one of the portions they are going to sell as they did in the past, and we haven't seen much of an effect on the price in the past as well.
They are also not going to dump all the coins they hold at once because they aren't doing this for money last time when they sold a portion of the coins, the price of Bitcoin was pretty low, and if they were doing it only for the money and profits, they could wait for the price to go up and then could sell the coins.
Neither this, nor any of their selling in the future will affect the price or the market in any way, besides, there are more Bitcoins bought and sold than that amount of a daily basis, so I don't think this will have any significance in front of that.
You said it right that there is nothing to worry about it because it is just a small amount as compared to the daily time period nevertheless If we monitor the market and see the chart deeply, we can clearly see from the chart that since the US government announced to sell Bitcoin on April 4, the price of Bitcoin has risen instead of being dumped. And if we look further within the day time frame, the price has gained 12.2℅ like from 64,568 to 72,500 in 5 days. So you are right that there is nothing problematic about it, it is a small one, there are bigger transactions in the market and that too brings only 1-2% corruption.
In addition soon we will have Bitcoin halving which will definitely boom market so I think such small amount of selling in such huge market will be just like drop in a ocean.