The coins come from one of the biggest cases in crypto history. They were part of about 94,000 Bitcoin seized in 2022 after the 2016 Bitfinex hack, in which about 119,754 Bitcoin were stolen from the exchange.
This was not the only move. In the two days before it, government-linked wallets also sent large amounts of Bitcoin toward Coinbase Prime, with reports putting those earlier transfers at about $770 million. Together, the moves fuelled fast speculation on social media that the government might be preparing to sell.
So far, there is no confirmed sale. The main $1 billion transfer did not go straight to an exchange, and Coinbase Prime also provides custody for the US Marshals Service, so a deposit there does not prove selling. The Justice Department and the Marshals Service gave no public explanation, and the Strategic Bitcoin Reserve order says seized Bitcoin should be held, not sold.
For traders, the size is the reason for fear. The US government still holds roughly 307,000 Bitcoin, worth about $25 billion, so even a small part reaching the market could add pressure at a time when Bitcoin already slipped below $81,000 before recovering toward $83,000. Until officials confirm the purpose, many traders are treating the moves as a custody shuffle, but staying cautious.
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: Cointelegraph, Decrypt, Unchained, CryptoBriefing
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