Bitcoin wobbles on sell fears as US moves $240M worth of Bitcoin to Coinbase address

• The US government seized 3,940 Bitcoin (worth $240 million) from a Silk Road vendor after a trial in January 2024.
• The wallet tagged to the US government just moved all the Bitcoin to a Coinbase account, sparking fears of a major sell-off.

About 3,940 Bitcoin that was seized from a Silk Road narcotics trafficker, Banmeet Singh, in January was recently moved to a Coinbase Prime wallet address, sparking fears of a possible sell-off.

The last time the US government moved seized Bitcoin to an exchange address was in 2022, when it offloaded $216 million worth of confiscated Silk Road Bitcoin. At the time, the sale exerted significant sell pressure on Bitcoin’s price and the broader cryptocurrency market, and traders are concerned the same may happen again.

The crypto market has declined recently due to developments like Mt. Gox’s plans to repay its creditors and general choppy conditions.

After the news broke, Bitcoin fell below the $61k level but has since climbed back to $61,400.