The U.S. government has transferred approximately $2 billion worth of Bitcoin seized in connection with the notorious Silk Road case. Following the transaction, the value of Bitcoin took a notable hit, dropping nearly 5% from its session highs.

According to the blockchain analytics firm Arkham Intelligence, a wallet tagged as "U.S. Government: Silk Road DOJ" moved 29,800 BTC related to the Silk Road website.

Subsequently, this large sum was split between two other addresses. 19,800 BTC, valued at approximately $1.33 billion, was moved to the address bc1qngydl7hmgdtmuqjmtsyj3pcwszv0yn5mj6kz4c, and another transfer of 10,000 BTC, worth around $670 million, was sent to bc1qlap8hkt9genaljz5nt2zlehhudx63zlahr2zek. Analysts at Arkham speculate that the latter may represent a deposit to an institutional custody or service.

These movements caused Bitcoin to fall below $67,000, marking an extension of its decline from the $70,000 session high noted earlier on the same day. At press time, Bitcoin was trading at approximately $66,700, reflecting a 1.6% decrease over the past 24 hours.

The timing of the government's transaction came shortly after former President Donald Trump announced at the Bitcoin 2024 conference in Nashville that he would establish a "strategic national bitcoin stockpile" if he were to be elected.

Before this transaction, the U.S. government was in possession of around $12 billion worth of seized Bitcoin, as reported by Arkham Intelligence. Historically, similar movements of large amounts of seized assets by the government have often been a precursor to the sale of those assets, which can have a significant impact on market prices.

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