Whale Alert: US Government Transfers 3,940 BTC to Coinbase Institutional

  • The US Government transferred 3,940 BTC, part of a larger 213,546 BTC holding from a Silk Road seizure.
  • This transaction coincides with significant market events, including the Mt. Gox redistribution and other government liquidations.
  • Despite enhanced liquidity from Bitcoin ETFs, weekend BTC trading volumes continue to decline, complicating market dynamics.

Alert! Alert! Whales are on the move!

The US Government just moved 3,940 BTC worth US$241.22m (AU$362.82m) as Lookonchain just reported. The funds are part of a 213,546 BTC (US$13.07bn) holding.

Data from Arkham shows that the US is holding significant amounts of ETH, USDT, wrapped Bitcoin, and BNB – albeit less than Bitcoin – as part of a significant Silk Road seizure, with the total balance of the holdings increasing since 2021.

Related: Bitcoin Price Slumps: Is Recovery Imminent? Analysts Divided Over Future Path

US Government holdings of Bitcoin and other crypto assets, source: Arkham

Sale Coincides With Broader Market Sell-Off

The sale comes at an interesting time, coinciding with the Mt. Gox redistribution after a decade-long effort to recover investors’ money. Meanwhile, the German Government sold billions worth of BTC in efforts to liquidate seized Movie2k funds and the US Government also sold Bitcoin seized from Banmeent Singh.

Singh, a 40-year-old from Haldwani, India, was sentenced to five years in prison and ordered to forfeit US$150m (AU$225.7m) for marketing and shipping drugs like Fentanyl and LSD from Europe to the US via mail – accepting payments in crypto on dark web marketplaces such as Silk Road and Alpha Bay.

BTC Weekend Volatility Continues Downtrend

The advent of ETFs and broader institutional engagement has improved overall liquidity for Bitcoin, say analysts at Kaiko Research. In a note they wrote that the introduction of spot Bitcoin ETFs has enhanced BTC liquidity, evident in narrower bid-ask spreads and deeper markets.

Despite this, the disparity in trading volumes between weekdays and weekends has intensified, with weekend trade volume falling to a record low of 16% in 2024, a decline from 28% in 2019.

The analysts say that trend suggests that the liquidity improvements from ETFs are mostly occurring on weekdays.

Related: Celebrity Memecoins: The Rising 2024 Crypto Trend and Its Significant Risks

Further complicating liquidity, market makers are less motivated to operate in the quieter weekend market, especially following infrastructure setbacks caused by the banking crises in 2023, which impacted crypto-friendly banks and payment networks crucial for 24/7 trading, the analysts added.

Get the most important crypto news delivered to your inbox by subscribing to the CNA newsletter

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

You may also like