Could This Be the Reason Behind Bitcoin’s Sudden Drop? The U.S. Government Moved an Incredible Amount of BTC

Approximately $1 billion worth of Bitcoin (BTC) was transferred from a cryptocurrency wallet linked to the US government.

According to data shared by blockchain analytics platform Arkham Intelligence, 12,267 BTC were transferred from an address holding assets seized by the US government in connection with the Bitfinex attack. The transaction, worth approximately $1.01 billion, took place on October 8th at 16:33 Turkish time.

The transaction recorded in Bitcoin block number 970496 involved 12,267.023307 BTC, and the address from which the transfer was made is said to be linked to funds recovered from the Bitfinex attack.

The identity of the recipient address in the transfer has not yet been definitively determined. However, on-chain tracking systems suggest that the recipient address could be an intermediary transfer or preparation address belonging to the US government. It is also being considered that this address could be an intermediary wallet used before the Bitcoins were transferred to Coinbase.

On the other hand, it was reported that addresses linked to the US government transferred over 6,200 BTC to Coinbase Prime in the previous two days. This development has led to speculation that the latest transfer may also be part of a similar process.

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However, the transfer of Bitcoins to Coinbase Prime or their removal from government-owned addresses does not necessarily mean the assets were sold directly. While it has been suggested that the transfers may have been carried out for sale, custody arrangement, or wallet restructuring purposes, the US government has not yet issued an official statement regarding the purpose of the transactions.

A graph showing the drop in BTC price.

Following this development, it was noteworthy that the Bitcoin price dropped to below $81,000.

*This is not investment advice.

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