By Moving Around $2 Billion Worth of Bitcoin at a Cost of Just $1.48, the US Government Has Inadvertently Advertised the Cryptocurrency’s Efficiency

This is not intended as investment advice. The author does not hold any position in any of the mentioned stocks.

The US government may have unknowingly sparked a major advertising campaign in support of Bitcoin’s potential by selling a portion of its confiscated BTC at an incredibly appealing price.

Despite its closure by the Feds in 2013, Silk Road had already established itself as one of the largest dark web marketplaces globally. It operated under the disguise of Bitcoin’s relative anonymity, selling illegal drugs such as LSD, heroin, and cocaine, and handling a total of $214 million in illicit transactions during the three years leading up to its abrupt shutdown.

In 2022, the US Department of Justice (DOJ) seized 50,676.17851897 Bitcoins as part of their enforcement action against Silk Road. This stash was originally stolen by James Zhong in 2012 and was recovered after the DOJ raided his home.

$1.48 to move ~ $2 Billion of Bitcoin! The U.S. government just launched the best ever ad campaign for Bitcoin. https://t.co/TUQnOGRszv

— Gabor Gurbacs (@gaborgurbacs) April 2, 2024

The Department of Justice has been involved in periodic transactions to sell off the stash of seized Bitcoins. This is the main point of concern. In a recent transaction, the DOJ transferred 30,174.70 Bitcoins – equivalent to approximately $2 billion – with a minimal transaction fee of only $1.48. Furthermore, the agency sent 2,000 BTC from this collection to a Coinbase wallet, presumably for the purpose of liquidation.

Undoubtedly, the US government has inadvertently showcased the remarkable efficiency of the Bitcoin Network by effortlessly transferring such substantial amounts at a minimal cost.

The DOJ periodically engages in transactions to either move or liquidate a portion of the seized Bitcoin stash. In 2023, the agency sold 9,861 coins, which were valued at $216 million at the time.

#BTC

Bitcoin is still technically in the Pre-Halving Retrace phase of its cycle (dark blue circle)

But this phase is all about setting up the next phase: the Re-Accumulation phase (red)

This recent rejection from $70k has given us a better idea where the Re-Accumulation… pic.twitter.com/pk5tYV0DIY

— Rekt Capital (@rektcapital) April 2, 2024

According to Rekt Capital’s analysis, Bitcoin is currently experiencing its usual pullback before the highly anticipated halving event in April. This event, which occurs every 4 years, will cut the reward for mining a block in half to just 3.125 BTC. It is expected that between now and April 20th, when the halving is scheduled to take place, Bitcoin’s price may fluctuate between $60,000 and $70,000.