Bitcoin moved by the US government

[LogitechMouse]

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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.

Thanks for sharing OP, but I didn't even care when the German government sold 50,000 Bitcoins so why should I care for the government.
I mean this is why Bitcoin is decentralized. Anybody that has it can just sell it anytime they want to and that includes the government.

If this happened 5-6 years ago when most of the investors are making decisions based on what's being spread online by these online media, this news might be enough for the market to drop down in price by maybe around 5-10%. It's good that the market cap has grown up significantly already, and investors right now are more intelligent. As expected, this action by the US government doesn't have any negative impact on the market.

[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?

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.

Although the reason cited is "safeguard and trade", indeed it's probably to just sell them. But I wonder why they had to enter into an official partnership just to do that. And is there a need to be equivocal about it?

It is a possibility that the US government wants to make the most of their coins. Bitcoin isn't anymore a currency of criminals, perhaps the prevailing perception during the time they seized those coins. Today, Bitcoin is a widely accepted asset class. Indeed, it is attractive to try earn from those coins rather than sell them outright.

[uneng]

Is this the reason why Bitcoin dropped yesterday to 56,000$? It's annoying... When Bitcoin is almost crossing the 60,000$ line again, US government moves a large chunk of BTC to an exchange. If they have no intention of selling it, why not just keep the coins stored inside a cold wallet under the possession of the government itself? Besides being safer for the government, it would also protect the market from pessimism and further dumps in price like the one we have just seen.

But it really seems the government isn't concerned about it at all. Thinking on the political scenario, it was drawn in a way that if Bitcoin does well, it's going to be good for Trump, so the current government doesn't have any sympathy for the cryptocurrency, and will despise and sabotage it as much as they can, at least on short run.

[tread93]

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.

It’s nice to know that the US government has decided to solely rely upon a publicly traded corporation to do the handling of the seized assets for safe keeping. Coin base has surely turned into a government tool to help influence regulation but has sewn coin base into their crypto strategy. I am surprised that the treasury hasn’t been the sole holder of these seized assets.

[peter0425]

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.

My bad. I think I only meant that the move to the exchange doesn’t necessarily mean that they are going to sell it right now. The partnership explains why they would move it to the exchange. I am not saying they will never sell but the move is most likely not about them gearing up to sell.

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.

I saw some people on social media platforms speculating already about how this can affect the market so I only wanted to share in case some people were being affected by FUD.

[Plaguedeath]

I don't see any bad thing, that's actually a good thing.

If they only move the coins, the miners will get benefit from the fees.

If they sell the coins, it will make Bitcoin become more decentralized.

it would also protect the market from pessimism and further dumps in price like the one we have just seen.

Why they should ask other people permission if they want to move and sell their own coins? have you ask other people permission before you move and sell your coins?

[Rikafip]

Although the reason cited is "safeguard and trade", indeed it's probably to just sell them. But I wonder why they had to enter into an official partnership just to do that.

Dunno, my guess is due transparency. And who knows, maybe they get some special perks that are not available to us mere mortals.

And is there a need to be equivocal about it?

Tbh, I don't think they are.

It is a possibility that the US government wants to make the most of their coins. Bitcoin isn't anymore a currency of criminals, perhaps the prevailing perception during the time they seized those coins. Today, Bitcoin is a widely accepted asset class. Indeed, it is attractive to try earn from those coins rather than sell them outright.

Could be the reason why they sent just a fraction of their total holding on Coinbase.

[tabas]

Germany, the US, and whichever country is moving tons of Bitcoins, to be honest, are no longer worrying. This only means that the bulls are stronger than the scary news that is being shown to us. Every time there's a movement of huge transfers from here and there, it seems to be a big deal but not anymore. While it can be helpful for someone who analyzes the market through fundamentals but the long impact of it will still show how firm Bitcoin is. And with that clarification, it's like a custody for those moved Bitcoins by the USMS or whichever US government agency that's responsible for that, to be sold or not, it won't be surprising.

[Iranus]

Is this the reason why Bitcoin dropped yesterday to 56,000$? It's annoying... When Bitcoin is almost crossing the 60,000$ line again, US government moves a large chunk of BTC to an exchange. If they have no intention of selling it, why not just keep the coins stored inside a cold wallet under the possession of the government itself? Besides being safer for the government, it would also protect the market from pessimism and further dumps in price like the one we have just seen.

But it really seems the government isn't concerned about it at all. Thinking on the political scenario, it was drawn in a way that if Bitcoin does well, it's going to be good for Trump, so the current government doesn't have any sympathy for the cryptocurrency, and will despise and sabotage it as much as they can, at least on short run.

Why are you upset when other people sell their bitcoins? If it was not the US government but Satoshi who woke up and sold his bitcoins, would you also feel uncomfortable because he was the cause of bitcoin's decline? Even though it wasn't the bitcoin the US government bought, it belongs to them and they have the right to do whatever they want.

Also, haven't we always been shouting to buy if bitcoin drops more, why are some of us now feeling upset and blaming others just because bitcoin is correcting?

Let's look at the positive side: the government selling bitcoin is a good thing, many people even expect the government to sell all bitcoin because in the long run that will be good for bitcoin because it will be more decentralized.

[mindrust]

Trump predicted this.

He knew that these crooks were going to sell the confiscated coins and that’s why he said “Never sell your bitcoin” in Nashville during the bitcoin conference.

Why would they move these coins to an exchange otherwise?

Kabamala is full of shit and everybody sees through her. She is anti-crypto.

[dzungmobile]

Compared to what Germany sold, it's not that much, and it probably won't affect the market.

Sales from governments affect the market but selling effect is smaller than emotional and psychological effects on market participants that last longer. After immediate effects from considerable sale, market will be panic and need quite a long time to recover and calm down. Effects even start before sales actually happen, it begins with rumors, news around the air and social media.

For most governments, Bitcoin has no particular value

They did see Bitcoin value after many years since 2009 and after Bitcoin has gotten massively impressive adoption and value as well as price growth.

especially considering that they didn't buy it, they confiscated it.

They did confiscated it not because Bitcoin has zero value. They confiscated it because has value and their confiscations have big value actually.

[ultrloa]

Trump predicted this.

He knew that these crooks were going to sell the confiscated coins and that’s why he said “Never sell your bitcoin” in Nashville during the bitcoin conference.

Why would they move these coins to an exchange otherwise?

Kabamala is full of shit and everybody sees through her. She is anti-crypto.

Maybe in preparation in there possible departure and want to clean out those possible mess since they maybe don't want to give Trump a resources to use if he win on this upcoming election that's why they decide to do that.

That's why I don't really like Kamala to win, they are showing an indication that there's nothing good will happen on crypto/bitcoin in her administration since possibly they would follow what Biden did.

But let see what happen and hopefully Trump will get a good momentum then win, since this is somehow this is beneficial for all bitcoin user.

[bubilas]

Trump predicted this.

He knew that these crooks were going to sell the confiscated coins and that’s why he said “Never sell your bitcoin” in Nashville during the bitcoin conference.

Why would they move these coins to an exchange otherwise?

Kabamala is full of shit and everybody sees through her. She is anti-crypto.

Maybe in preparation in there possible departure and want to clean out those possible mess since they maybe don't want to give Trump a resources to use if he win on this upcoming election that's why they decide to do that.

That's why I don't really like Kamala to win, they are showing an indication that there's nothing good will happen on crypto/bitcoin in her administration since possibly they would follow what Biden did.

But let see what happen and hopefully Trump will get a good momentum then win, since this is somehow this is beneficial for all bitcoin user.

I hope Trump wins because I like his qualities as a trader. He knows how and what to do to make business profitable for everyone. And I believe that he will be able to organize the relationship between the government and the crypto world so that everyone benefits from it. I am sure that he will be able to do this, judging by his actions and statements. It is not for nothing that he pays so much attention to statements about the crypto industry.

[kizlod]

Trump predicted this.

He knew that these crooks were going to sell the confiscated coins and that’s why he said “Never sell your bitcoin” in Nashville during the bitcoin conference.

Why would they move these coins to an exchange otherwise?

Kabamala is full of shit and everybody sees through her. She is anti-crypto.

Don't they have to sell confiscated coins at some point?

[Blitzboy]

The government moved some Bitcoin to Coinbase. So what? It does not imply they are preparing to flood the market and lower the price, therefore ruining it

This is just smart asset management. To handle seized assets, they are working with reliable platform Coinbase. Actually, it's a vote of trust in Bitcoin. The government considers it as a reasonable, long-term store of value

Let us now be real. The government is not going to engage any dubious actions meant to devaluate the market. They under investigation; their behavior is open. And it wouldn't bring down the system even if they tried to sell a lot of Bitcoin. Bitcoin is resilient. It's meant to be handling this kind of thing

So, don't panic. Stay the course. This is only another obstacle on the road toward Bitcoin's unavoidable supremacy. And the future is Bitcoin, I am telling you

[mindrust]

Trump predicted this.

He knew that these crooks were going to sell the confiscated coins and that’s why he said “Never sell your bitcoin” in Nashville during the bitcoin conference.

Why would they move these coins to an exchange otherwise?

Kabamala is full of shit and everybody sees through her. She is anti-crypto.

Don't they have to sell confiscated coins at some point?

They can use the forfeited funds but It also depends on the state I guess.

https://www.fbi.gov/investigate/white-collar-crime/asset-forfeiture

Use of Forfeited Funds
All across the country, federal, state, local, and tribal forfeited funds and property are being used to help protect and serve our communities and support law enforcement. For example, in Kentucky, forfeited funds were used to refurbish a facility to shelter child abuse victims in the state. And in New York City, forfeited funds are being used to advance community-based policing to better serve neighborhoods. These funds have financed an array of additional services and equipment, including:

•A drug and alcohol treatment facility
•Transportation to drug treatment services
•Naloxone rescue kits for opioid overdose victims
•A job skills program
•A youth program aimed at drug and crime prevention
•Afterschool programming
•A plaque for a law enforcement officer killed in the line of duty
•School resource officer salaries
•Bomb-sniffing canines

…

However I don’t see a statement saying that they should sell it.

They can very well use bitcoins to help people without liquidating them first.

Trump would have found a way to keep them.


Another source

https://www.usmarshals.gov/what-we-do/asset-forfeiture

Personal Property
The U.S. Marshals Service (USMS) manages and sells a wide array of assets including, but not limited to, vehicles, vessels, aircraft, fine jewelry, and art. In addition, U.S. Marshals Service is responsible for selling intangible assets such as virtual currency, domain names, and other various licenses. Every year, U.S. Marshals Service features hundreds of online and live auctions that are open to the public. These auctions frequently feature collectible vehicles, diamonds, certified Rolex watches, gold and silver, famous paintings, and much more.

Here they say the US marshals service is responsible for selling personal assets including crypto but I don’t know if it is mandatory.

[wallet4bitcoin]

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.

If a whale had come across this kinda transaction without a clear explanation of the conditions behind the transaction, trust me, this would have triggered another panic sale just like that of Germany.

Irrespective of the News about the US Government being behind this transaction, some traders will still express FUD over the transaction as the said amount is capable of causing some impact on the market as no one knows the direction of the trend yet.

[naira]

Every time the US government moves Bitcoin to Coinbase, the price of bitcoin in the market drops by 5% within 5 days of the move. And this has happened several times and the pattern is almost the same. However, it is their right to sell it because the US government is one of the 10 largest Bitcoin holders (and that too from confiscations). uppss

[legendbtc]

Every time the US government moves Bitcoin to Coinbase, the price of bitcoin in the market drops by 5% within 5 days of the move. And this has happened several times and the pattern is almost the same. However, it is their right to sell it because the US government is one of the 10 largest Bitcoin holders (and that too from confiscations). uppss

Are you sure about that or is it just a coincidence? Because the government only moved 10kBTC worth over 600 million USD and this is a very small number compared to bitcoin's daily trading volume of over 30 billion USD, so I don't think the market will be affected by the news small.

Why do we always find a way to blame someone every time the price of bitcoin drops? We just need to simply think that it is just the movement of the market, bitcoin has continuously increased and created new ATH this year, so it is understandable that bitcoin is correcting. Why don't we think like that to make things easier?

No asset or market can increase vertically, bitcoin is no exception and to be able to increase strongly and higher we need a healthy correction. That's what's happening, and we should accept that reality.

[Cryptmuster]

Every time the US government moves Bitcoin to Coinbase, the price of bitcoin in the market drops by 5% within 5 days of the move. And this has happened several times and the pattern is almost the same. However, it is their right to sell it because the US government is one of the 10 largest Bitcoin holders (and that too from confiscations). uppss

I highly doubt that this was the reason for the fall in the price of bitcoin. Maybe it was a combination of factors, because during this period they also started paying out the last portion of bitcoins from Mt. Gox, but I think that these are too insignificant volumes for the market to be able to somehow strongly influence bitcoin. Perhaps this will temporarily delay it, but as soon as all payments are made, bitcoin will continue to grow.

Bitcoin is not very important for states, because their budgets significantly exceed the value that they have in bitcoin, and they just sometimes sell it, I don’t even know why, because this money is too insignificant on the scale of the entire country, but if they had simply hold it for long enough, they would have had a chance to get something really significant in the future if bitcoin continues to grow.