Silk Road Bitcoin Worth $2 Billion Continues Moved by US Government

Key Points:

• On July 29, the US government transferred 29,800 Bitcoin to a new address, worth nearly $2 billion.
• This transfer has been connected to Silk Road Bitcoin. Before this, the government liquidated 9,861 BTC back in March 2023 and transferred 30,175 BTC to Coinbase in April.
• The move has sent shockwaves among investors that a sell-off may be imminent as Bitcoin fights to stay above $70,000.

On July 29, the US government transferred 29,800 Bitcoins connected to Silk Road to a new address with an estimated value of nearly $2 billion.

Read more: Senator Cynthia Lummis Proposes $68 Billion Bitcoin Reserve to Combat US Debt

Speculation Rises as US Transfers Seized Silk Road Bitcoin

This news comes just after the very recent surge in Bitcoin prices, which peaked during the week at $70,000 and is now retracing above $67,000. According to Arkham, an AI-powered blockchain analytics platform that allows for the exploration of blockchain transactions and on-chain data, the transaction can be identified.

The transfer caused speculation as to whether this might be a sell-off by the US government. The last time the government sold Silk Road Bitcoin was in March 2023, when it liquidated 9,861 BTC to fetch $216 million.

The authorities said that more than a decade ago, the seized Bitcoins belonged to one of the dark web marketplaces, Silk Road. Zhong, who in 2012 acquired cryptocurrency on Silk Road, has now had more than 50,000 BTC taken from him by the US Department of Justice in the largest cryptocurrency seizure ever.

Silk Road was an illegal goods trading platform, and it was shut down back in 2013. Creator Ross Ulbricht was arrested and convicted, now serving two life sentences with no parole.

Bitcoin Hits Resistance Above $70,000

The US government transferred 30,175 Bitcoins to a wallet owned by crypto exchange Coinbase back in April. At that time, the value of the Silk Road Bitcoin transaction was around $2 billion.

Whereas for now, it is complicated to hold the pulse above $70,000 in Bitcoin, it raises positive expectations on its future performance.