There are ongoing rumors that the United States government has just parted ways with 9800 Bitcoin (BTC) in a sale that reportedly raised $277 million. The supposedly sudden release That amount of BTC in the crypto space caused the value of the coin to start depreciating and it is currently trading at $27,687.83 down from a marginal gain of 0.84%.
Before the US government sold BTC, the price of the digital currency skyrocketed past $28,000.
According to rumors, the US government will still hold a total of over 200,000 BTC. However, if the decision is made to sell this massive BTC for the long term, it may cause the price of Bitcoin to fall further to below $10,000. These huge BTC sales generally cause mixed directions among cryptocurrency enthusiasts, especially those who own a significant percentage of the coin.
This time, several responses to WhaleWire's tweet indicate that the Bitcoin sales, if true, will be a welcome development. Meanwhile, BTC continues to take a bullish stance and has a medium level of volatility based on today's price. analysis.
The US government sells confiscated BTC
This is the second time the government has sold this same amount of BTC. According to a screenshot shared by WhaleWire on Twitter, three weeks ago the US government sold 9,800 BTC.
All of these cryptocurrencies were seized in what the government called criminal operations. In November 2022, around 50,000 BTC were seized from crypto criminal James Zhong. It should be noted that this was not the first time such an incident has occurred. Back in 2014, the federal government also sold 30,000 BTC that it obtained from the same source.
At the time, the American cryptocurrency exchange Coinbase was chosen as the platform that the government leveraged to complete the sales. Back in March, it was reported that around 40,000 BTC in US government-linked wallets were moving. However, a significant portion of the coins were found to be transferred internally while the rest were on Coinbase.
During that time, Glassnode noted that โapproximately $9,861 BTC seized from the Silk Road hacker was sent to our Coinbase pool.โ
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