The US government has been observed transferring $40 million worth of Bitcoin (BTC) and Ethereum (ETH) on Thursday, April 4. This crypto reserve was seized from two Estonian citizens back in 2022. This move comes amidst a turbulent period for the leading cryptocurrency as the Bitcoin price just managed to rebound above $67,000.
The seized Bitcoin and Ethereum, now in the possession of US authorities, holds the potential to impact the crypto market dynamics significantly. According to Arkham Intelligence, the US government made two subsequent transfers today for BTC and ETH, respectively. The first transfer was of 4,567 ETH worth $15.21 million.
In addition, the authorities transferred 374 BTC worth $24.80 million to an unknown wallet. With the market eagerly watching the US government’s next steps, speculation is rife regarding the potential impact on the Bitcoin and Ethereum price.
It is estimated that the eventual sale of the seized crypto reserve by the US government could exert downward pressure on the Bitcoin and Ethereum price. The influx of such a substantial amount of Bitcoin into the market may trigger selling pressure, expediting the current dip in prices.
Earlier, late Tuesday morning, a wallet associated with the US government transferred a massive 30,175 Bitcoin. Considering the Bitcoin price of around $65,000 at the time, this transaction amounts to approximately worth $2 billion.
The last confirmed instance of the government selling Bitcoin dates back to March 2023. During this event, they sold 9,861 coins for $216 million. This sale followed the government’s seizure of around 50,000 Bitcoin linked to the Silk Road website in late 2022.
Among the recent transfers, approximately 2,000 Bitcoin were sent to a wallet identified by Arkham Intelligence as belonging to the crypto exchange Coinbase. The remaining Bitcoin was transferred to a wallet flagged by Arkham as being owned by the government.
Also Read: Bitcoin Short-Term Investors Lose $5.2B Amid BTC Price Crash
After plummeting over 11% from the recent high of $73,750.07, Bitcoin has recovered significantly. As of writing, BTC price was $67,534.94, gaining 2.58%. Meanwhile, the market cap for BTC stood at $1.32 billion. In contrast, the trading volume plunged 20.20% to $30.11 billion.
However, if the recent US government Bitcoin and Ethereum transfer is made for a selloff, the rebound could be short-lived. In addition, Michaël van de Poppe predicted that the Bitcoin consolidation will continue and there’s not much upside as of now. On the contrary, he expects a surge in altcoin prices, which could benefit Ethereum despite the potential selloff.
At press time, the ETH price was up by 1.35% to $3,374.15 with a market cap of $404.99 billion. Whilst, the trading volume for Ethereum slumped 24.82% to $13.12 billion in the last 24 hours.
Also Read: Ethereum L2s May Outshine Main Blockchain, VanEck Reports
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