Bitcoin moved by the US government

[peter0425]

US government just moved 10,000 bitcoins to an exchange, coinbase prime. While this might be worrying for others especially after the German government moving their own bitcoins, I advise everyone to remain calm. The 10,000 bitcoins taken in custody from the Silk road case were transferred to an exchange but not with the intention of selling them.

The government has made partnership with Coinbase and has entrusted them to hold seized bitcoins. So if anyone is saying that this is a sign of a market crash or a reason for it then don’t believe them and remain steadfast in your hodling.

[pooya87]

Nobody really cared about the German thing and nobody is caring about this one either. In both cases we only have noise in the social media, otherwise 10k bitcoin is not even a big amount. According to coinmarketcap.com the bitcoin daily trading volume is 550k so that's like 1.8% of one day's volume...

[Felicity_Tide]

Just as the first replied had said "Nobody really cares", although I don't think traders and short term hodlers would be saying the same. But truth be told, news like this, especially the ones coming from the US government can cause panic, and all thanks to social media, because they are the driving force behind such.

But moving 10K BTC to Coinbase when price is at $58k sounds a little weird. Or has Coinbase always been keeping US government's Bitcoin?.

And lastly, the Link you provided is not working. Is it general or just me ?.

[Rikafip]

The government has made partnership with Coinbase and has entrusted them to hold seized bitcoins. So if anyone is saying that this is a sign of a market crash or a reason for it then don’t believe them and remain steadfast in your hodling.

If you read the article you shared more carefully, you'll see that it says they are in charge of trading the seized bitcoins, not just holding them. I mean, it's not that I care what they do with it or that I'm worried about them selling, but let's not misinterpret things.

Today, the U.S. Marshals Service (USMS), an agency within the U.S. Department of Justice that is responsible for asset forfeiture, announced that it selected Coinbase Prime to provide custody and advanced trading services for the agency’s “Class 1” (large cap) digital assets, which it manages centrally in support of federal law enforcement.

[NotATether]

Who cares??

And why are people still selling their bitcoins? What's wrong with them?

Literally the only people who should be selling right now are short-term traders who realize and acknowledge that they are most likely going to get burnt by the market when the Bitcoin price inevitably goes back up like every other time this sort of thing has happened in the past. Don't you guys think so too?

[fuguebtc]

I saw this news on X and it seems like no one cares about it anymore, people are getting smarter after the news about the German government and/or Mt.gox selling their bitcoins. If you also follow Mt.gox's wallet, they just transferred over 33kBTC to Bitgo yesterday and you can see that number is much larger than the US government . But no one cares whether they sell or do anything with those bitcoins .
Governments or organizations selling large amounts of bitcoin are no longer scary, instead the market is gradually adapting and no longer cares. If you think people still care then they'll spend more time worrying about Mt.gox than the bitcoins the US government has moved.


https://x.com/ArkhamIntel/status/1823375642953486636

[Darker45]

Is this how sorely the US government lacks of basic Bitcoin knowledge that they have to enter into a partnership with a private company just to safekeep their coins? They hired and paid a custodian of something which even a young child could securely self-custody?

Anyway, just like the others, I don't care if they hodl or sell their coins. They're free to do whatever they want with their seized coins. But since they're the ones who started labelling certain coins as dirty and tainted, why don't they practice what they preach and burn these coins from circulation?

[FatFork]

It seems like nobody in the US government got the memo: "Not your keys, not your coins!"

Let's hope that these bitcoins don't get hacked (again). 

[Apocollapse]

I check the Bitcoin price is same, so no one thinks this will impact to Bitcoin price instead @OP you're might be the one who think this $10K Bitcoin moved will impact Bitcoin price since you're the one who bring this subject.

I saw this news on X and it seems like no one cares about it anymore, people are getting smarter after the news about the German government and/or Mt.gox selling their bitcoins.

Because it's really a pointless factor to predict Bitcoin price.

If someone think moving out coins is same to sell the coins, it means they're want other people must not move the coins. And some people will hate this activity since they will say Bitcoin is a currency instead of a commodity.

[avp2306]

The government has made partnership with Coinbase and has entrusted them to hold seized bitcoins. So if anyone is saying that this is a sign of a market crash or a reason for it then don’t believe them and remain steadfast in your hodling.

If you read the article you shared more carefully, you'll see that it says they are in charge of trading the seized bitcoins, not just holding them. I mean, it's not that I care what they do with it or that I'm worried about them selling, but let's not misinterpret things.

Today, the U.S. Marshals Service (USMS), an agency within the U.S. Department of Justice that is responsible for asset forfeiture, announced that it selected Coinbase Prime to provide custody and advanced trading services for the agency’s “Class 1” (large cap) digital assets, which it manages centrally in support of federal law enforcement.

People just misinterpret everything US government do and they only look at those figures moved then get panic since they think there's negative effect it will give to the market. But we see people reaction on that situation and they should be calm in such situation since we need to normalize those kind of selling since there's provably instances that any institution will take their profit so we need to chill and don't get scared about those situation since it will never create scary dump in the market.

Maybe some people like OP just want to hear some opinion from other people regarding on this action done by US government. So provably lots of people confused about that situation already know that there's nothing to get fear and its better for them to relax then focus on their investments.

[dzungmobile]

US government just moved 10,000 bitcoins to an exchange, coinbase prime. While this might be worrying for others especially after the German government moving their own bitcoins, I advise everyone to remain calm. The 10,000 bitcoins taken in custody from the Silk road case were transferred to an exchange but not with the intention of selling them.

I agree with you that no reason to be panic now but disagree with you that moving bitcoin to an account on Coinbase Prime does not have any risk of selling now or in future. This movement can serve as moving to a third party custodial wallet but in future, it might be sold by the owner of these bitcoins, the US. government.

It's more realistic to assume that these bitcoins will be sold, just a matter of time, when it will be sold only. Assume it will be sold, you will see no reason to panic as in Bitcoin market, there are buyers and sellers and many bitcoins changed hands on daily basis.

[Cryptmuster]

I agree with you that no reason to be panic now but disagree with you that moving bitcoin to an account on Coinbase Prime does not have any risk of selling now or in future. This movement can serve as moving to a third party custodial wallet but in future, it might be sold by the owner of these bitcoins, the US. government.

It's more realistic to assume that these bitcoins will be sold, just a matter of time, when it will be sold only. Assume it will be sold, you will see no reason to panic as in Bitcoin market, there are buyers and sellers and many bitcoins changed hands on daily basis.

Compared to what Germany sold, it's not that much, and it probably won't affect the market. For most governments, Bitcoin has no particular value, especially considering that they didn't buy it, they confiscated it. Sometimes they decide to sell some of their Bitcoin when they need to, but on a national scale, these funds are insignificant to them. If they move it, it means they have plans for this coin. My opinion is that in this case, it would be better if holders who don't understand the value of Bitcoin (like some countries) sold it, and let it be in the hands of true holders.

[Smartvirus]

~snipe~

One thing is for sure about these sort of transactions:

It does make the news for a time, afterwards, it dies out. It’s strange however, government having to make these deals with CEX.
Either they sell or not, it always doesn’t matter, the market is sure to absorb all of it and bounce back. A mare BTC10,000 that I don’t own wouldn’t be enough to cause a market crash.

[Catenaccio]

One thing is for sure about these sort of transactions:

It does make the news for a time, afterwards, it dies out. It’s strange however, government having to make these deals with CEX.
Either they sell or not, it always doesn’t matter, the market is sure to absorb all of it and bounce back. A mare BTC10,000 that I don’t own wouldn’t be enough to cause a market crash.

News change from old bitcoins to bitcoins under control of governments. They are nearly the same, as transactions can be done for wallet switches or preparation for sales later.

Do governments want to do this, move their Bitcoin transactions, to fud and manipulate the market?

Only governments know intention of their activities but we only can know when they already sold their coins. At times of transactions, we are uncertain about next movements of these entities but to be sure, if those coins will be sold, market can survive and move next into the future. No need to feel panic when someone, some entities sell their bitcoins if we know and believe that Bitcoin will exist for a long time. I don't know how long but it won't die soon or die by any sales from governments.

[Rikafip]

Literally the only people who should be selling right now are short-term traders who realize and acknowledge that they are most likely going to get burnt by the market when the Bitcoin price inevitably goes back up like every other time this sort of thing has happened in the past. Don't you guys think so too?

I think the US government (and the German government too) treats Bitcoin like any other seized asset, meaning they sell it without considering its future price. It's not a smart move, but governments aren't really known for making smart decisions or thinking ahead.

Is this how sorely the US government lacks of basic Bitcoin knowledge that they have to enter into a partnership with a private company just to safekeep their coins? They hired and paid a custodian of something which even a young child could securely self-custody?

I don't think that those bitcoins are sent to Coinbase for hodl purpose but instead to be sold. Anything else wouldn't make any sense whatsoever.

[TheUltraElite]

big moves like this can make people nervous, but it's probably just a routine transfer. With 10K BTC being only a small fraction of daily volume, it’s not likely to impact the market much. Keep calm and keep holding!

A big amount of coins moving to exchanges or back to wallets if a reason for nervousness, that trader should not trade, because they lack the trader's mindset. The latter needs to identify these changes but not get emotionally charged because of it.

There are so many such movements happening every few days, what do we have to do about it? Wait for the price to drop and buy it, its plain and simple. Because when you have bought at that low you have ample points to sell at having a good multiplication of the price.

[kryptqnick]

Rikafip was right to point out that the money wasn't just transferred for holding: the article does explicitly mention trading, so I think the funds will eventually by sold via Coinbase. It's still not a huge deal. It's nothing out of the ordinary, and the total amount is too small to make a difference. It's worth only $59 million, whereas Germany gradually sold $2 billion worth of BTC. So it's a small sell-off, and consistent with current USA crypto practices.

[serjent05]

I think government moving and selling Bitcoin under their custody is good for the Bitcoin economy.  It may have a temporary downturn effect but it will be beneficial in the long run.  Imagine instead of one entity holding such number of BTC, through liquidating it, will let multiple hands hold that number of coins.  This kind of action pushes the Bitcoin market into decentralization.  It will also hinder the manipulation of the market.

The more people holding BTC the more harder it is to manipulate the market which in turn produce a healthy decentralized market exchange.  It also promotes market stability and helps reduce market volatility.

With more people holding Bitcoin it also promotes network stability since more people will think of hosting nodes, and mining the chain which in turn makes it difficult for the hackers to exploit the network.

[Zlantann]

US government just moved 10,000 bitcoins to an exchange, coinbase prime. While this might be worrying for others especially after the German government moving their own bitcoins, I advise everyone to remain calm. The 10,000 bitcoins taken in custody from the Silk road case were transferred to an exchange but not with the intention of selling them.

The standard practice of the US government is to open an auction through the US Marshal Service where interested parties are called upon to submit a bid for the purchase of Bitcoins. With the agreement between the US Marshal and Coinbase, we can just speculate that the coin is for safe keeping and not for sale.

The government has made partnership with Coinbase and has entrusted them to hold seized bitcoins. So if anyone is saying that this is a sign of a market crash or a reason for it then don’t believe them and remain steadfast in your hodling.

I don't really care if the US want to sell all the Bitcoin at its disposal because the market will still readjust as we saw in the case of the German State of Saxony. A price drop is a good opportunity to accumulate, so it's all good. 

[Wiwo]

Nobody really cared about the German thing and nobody is caring about this one either. In both cases we only have noise in the social media, otherwise 10k bitcoin is not even a big amount. According to coinmarketcap.com the bitcoin daily trading volume is 550k so that's like 1.8% of one day's volume...

Bitcoin have gone passed this stage whereas small fraction such as 10k BTC, this use to be news when the sink road thing happen a long time ago, and even after the sink road incident bitcoin and the entire cryptocurrency market have gone through some other worst phase such as FTX exit scam and the other notable scams that effected the cryptocurrency market for a short while before recovery.

So selling off the remaining of the entire bitcoin seizure in the sink road will be a good news instead of bad news as expected, and at the moment, this sell off event won't have any impact on the price of bitcoin or other cryptocurrencies assets as in form of a market reactions.