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Data shows the US government often sells to the lowest local market

Quick take

April 2nd, CryptoSlate reported that the US government sold 1,999 Bitcoins (BTC), worth around $130 million, from a wallet associated with Silk Road to digital asset exchange Coinbase. According to Arkham Intelligence, only 1,999.999 BTC was spent in the transaction, leaving the remaining 29,799.99012413 BTC unspent.

US Government Transaction Explorer: (Source: Arkham Intelligence)

The recent transaction reduced the BTC balance seized by the US government from 210,800 BTC to 208,800 BTC, according to CryptoQuant data. As a result, the government now owns less than 1% of the total BTC supply.

US Government Seized Bitcoin Balance and Balance Change: (Source: CryptoQuant)
US Government Seized Bitcoin Balance and Balance Change: (Source: CryptoQuant)

This sale aligns with the government’s current strategy of gradually getting rid of seized BTC holdings, according to data from CryptoQuant. Notably, in March 2023, around 10,000 BTC were sold at a time when BTC was trading at around $21,500. This sale almost coincided with a local low price, which fell to around $20,000 during the SVB collapse. Another large sale of around 8,200 BTC took place on July 12, 2023, with Bitcoin trading at around $30,000.

The development bears similarities to the British government’s sale of more than half of its gold reserves in 1999 at around $270 an ounce. This move coincided with a cyclical low before gold embarked on a multi-year rally.

The article Data Shows US Government Often Sells at Market Lows appeared first on CryptoSlate.

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