According to Bloomberg analyst, the US government’s $2B BTC transfer has sparked discussions, saying a potential Coinbase deal is the reason.
James Seyffart, a senior ETF analyst at Bloomberg, has sparked speculation that the US government’s recent Bitcoin transfer may have resulted from a prospective Coinbase deal. Arkham Intelligence reported that the United States government transferred $2 billion in Bitcoin confiscated from Silk Road to two addresses. This transfer occurs immediately after Donald Trump’s recent declaration to retain the government’s Bitcoin holdings.
Coinbase Deal Under Review
Arkham Intelligence reported that the United States government allocated $2 billion in Bitcoin to two addresses: one containing 10,000 BTC, valued at $669.35 million, and the other containing 19,800 BTC, valued at $1.33 billion. They indicated that this action suggests a deposit of 10,000 BTC to an institutional custody service.
Bloomberg analyst James Seyffart suggested that the US Marshals Service’s selection of Coinbase to oversee its digital assets likely explained this. He stated, “It must be this, right?” after sharing the update.
In the interim, a user concurred with Seyffart, observing that the distribution schedule on the US Marshal’s website suggests a strategy to distribute the items over five years rather than all at once. Reinforcing the conjecture, Seyffart responded, “That makes sense.”
MartyParty, a crypto influencer, also expressed this sentiment. He proposed that the US Marshals Service transfer Bitcoin to Coinbase for custodianship rather than for sale. As a recent report indicates, the US Marshals Service has chosen Coinbase Prime to provide custody and advanced trading services for its large-cap digital assets.
The objective of this partnership is to optimize the administration of prevalent cryptocurrencies. The contract is valued at $32.5 million and is expected to be in effect for five years, with the possibility of a six-month extension.
The U.S. government’s Bitcoin transfer has sparked speculation
The recent Bitcoin movement by the US government has prompted apprehension regarding a prospective selloff by the Biden administration. Several crypto aficionados criticized the administration, describing it as anti-crypto. Senator Cynthia Lummis observed that the “Harris-Biden” administration, which Secretary Yellen and Senator Warren lead, is continuing with business as usual in the hopes that the public remains unaware.
Furthermore, Anthony Scaramucci has criticized the extreme left for opposing a policy that Donald Trump supports, attributing the sole motivation to spite. It is “odd” to Scaramucci that a favorable policy has become a rallying cry for the opposition, which will ultimately disenfranchise 30 million potential Democratic voters in November.
In the interim, this action underscores the increasing polarization in American politics, where bipartisan policies are met with opposition due to political vendettas. Scaramucci’s remarks indicate that this strategy may undermine the Democratic Party’s prospects in the forthcoming elections, as it prioritizes opposition over cryptocurrency supporters’ interests.
Nevertheless, the US Marshals Service’s decision to collaborate with Coinbase resulted from a thorough evaluation. The foremost crypto exchange’s capacity to offer secure, institutional-grade crypto services at scale and its strong track record were critical factors in its selection.
The BTC price was down over 1% to $67,300 at the time of writing, and its trading volume had increased by 57% over the past 24 hours to $39.36 billion. It has reached a peak of $69,987.54 today but has since retreated to its current level.