U.S. Moves $2B in Silk Road Bitcoin to Coinbase Prime, Sparking Market Concerns

Last Updated on December 19, 2024

Written by

Efe Bravo

Website screenshot of Silk Road Anonymous Marketplace. Source: Jarretera - stock.adobe.com

Key Takeaways:

Nearly $2 billion in Bitcoin (19,800 BTC) tied to the Silk Road was moved to Coinbase Prime, signaling potential government liquidation.
The U.S. government still holds over $18 billion in seized BTC, with previous sales often causing market volatility.
Despite concerns, Bitcoin’s price only dipped slightly following the transfer, raising questions about the market’s reaction to further government sales.

A major Bitcoin transfer, involving nearly $2 billion worth of cryptocurrency tied to the Silk Road dark web marketplace, has raised concerns over potential market impacts.

On Monday, 19,800 BTC from the U.S. government’s Silk Road confiscation was moved to Coinbase Prime, according to blockchain data.

BREAKING: 10K Silk Road BTC ($593.5M) moved to Coinbase Prime

Wallet bc1ql received 10K BTC from a known US Government wallet 2 weeks ago. This BTC has just been sent on to 33J, a Coinbase Prime deposit wallet. pic.twitter.com/kNLsiJzL95
— Arkham (@arkham) August 14, 2024

The Bitcoin was first transferred from a government-controlled wallet labeled “U.S. Government: Silk Road DOJ Confiscated Funds” to an untraceable address before being deposited on Coinbase Prime, suggesting the government might be preparing to sell the assets.

While similar past transfers have triggered market volatility, Bitcoin’s price only dipped slightly, falling about 1% to just below $96,000.

The U.S. government still holds over $18 billion worth of seized cryptocurrency, including more than 50,000 BTC from Silk Road.

This transfer is part of an ongoing collaboration with Coinbase Prime to manage and liquidate large-scale digital assets from federal investigations.

Previous government sales of Silk Road-linked Bitcoin have caused significant market drops.

In March 2023, around 10,000 BTC was sold for $216 million.

However, no further sales have been confirmed, though the Department of Justice is seeking court approval for additional liquidations, fueling speculation about future market moves.