Topic: 30,170 BTC worth $2B sent to Coinbase (Read 330 times)

Its not the worst, the worst was right on the lows across many years.  This would just be selling mid way rather then the bottom price really, not the best timing not the worst.    Depends on if that person can buy back what they sold at any point.

I recommend if you do sell some you then buy monthly or some regular interval until you get back to the point of holding you had previously.  It might be the average is higher or lower then the price you sold at but either way its fair enough as you have had use of that money meanwhile.   The wider period for BTC right now is positive but near term it could experience continued selling and not enough buying which is a lower price but underneath I think its fine this whole year really.   Better to lose the sellers now then have them interfere later.

Agreed, unless someone is facing an emergency and they need the funds they have invested in bitcoin over the years right at this moment, selling now is probably one of the wort moves I could imagine a person making, bitcoin is just on the verge of a bull run without really entering it yet, once the halving comes to pass and its effects are felt, that is when we will see what this bull run can bring, and surpassing 100k is just the start as the price will go much higher than that.

Those Bitcoins are going to be eaten up very quickly by whales. I am not giving anyone financial or trading advice but  I think anyone who sells or waits to buy Bitcoin right now because of this news is going to have a bad time. The risk of missing out on the 100k green monthly candle is simply too big.

We don't need to overreact when reading news like that because even though Bitcoin is in a bullish trend that doesn't mean this coin can't go down in a short period, and in fact every day some people sell Bitcoin to start taking profits and if the total is of course bigger than which is transferred to coinbase exchange and also there will always be people ready to buy it because they target a higher price and believe in it. Nowadays such news sometimes no longer has a big impact on the market because many traders are waiting for a better time to sell and choose to continue adding Bitcoin to their pockets

You can’t compare the daily or weekly volume and say it’s the same as a $2B sell order. The market is generally balanced and many of the coins that trade daily are back and forth.

If the daily volume is $500M you can say that if someone were to market sell $500M within a 24 hour period the price would still stay the same. Doesn’t work like that.

$2B is a huge amount and it’ll take a while to absorb.

yups and since this is just a transfer this must not affect the market and we must not be alarmed , what we must be worrying once this amount is converted into something like fiat or another altcoins then this may affect the market accordingly because those weak handed people here will surely panic.
but that sounds changing now because as we can see in the market that bitcoin once again broke 72k and now still growing as I am typing this.

People's initial reaction to the news may be bearish, which we seem to be seeing right now. It is a natural reaction for some traders to take profits, but a more gradual sell-off will likely have a less dramatic impact. There will always be buyers interested in Bitcoin, even at high prices. Some may have been accumulated before this news even hit the wire. While the short-term market reaction is likely to be negative, a major price collapse seems unlikely. Bitcoin has surpassed similar events in the past, such as GBTC coin sales and MtGox. The market will eventually absorb this additional supply, and the price will find a new equilibrium.

lol that's not how ETFs work. Blackrock only buys on behalf of their customers, with whatever money their customers have. No need for silly conspiracy theories. Coinbase is the biggest and most respected US crypto exchange and they do a lot of institutional trading. Naturally the US govt is going to use them to sell Bitcoin. This Bitcoin will be sold OTC through Coinbase, and the OTC market has existed for many years. Has absolutely nothing to do with Blackrock lol. Why are some of you so obsessed with blackrock?? Such a weird obsession to have.

---

Price is already back to $68k. I don't think the market is that scared of $2 billion of selling. That is nothing compared to like weekly volume.

But I am liking the fact that Bitcoin is getting a few weeks to chill in the $60,000s and low $70,000s. This is making the market chill out a bit and building up a nice launching off point for the bull run. Things were looking pretty shaky just a few weeks ago when Bitcoin had suddenly gone from $51k to $73k very quickly and everyone was talking about $100k being just around the corner. Regardless of what the govt does with this 30k bitcoin, and regardless of if they have already sold it or when they plan to sell it, Bitcoin is gearing up for the bull run and this 30k bitcoin shouldn't scare anyone.

[moderator's note: consecutive posts merged]

I think it will fall below $60,000. That's what I see; there won't be a reversal, in my opinion. But when it touches 60k, I can take a position on the new trend that will happen towards raising its price value in the market.

There is a lot of confusion now and several speculations that we read about what is happening in the market, especially since this is what happened with the entry of bitcoin into the coinbase, something that most people keep thinking is one of the main reasons for Bitcoin dropping.

Take two half a litre glasses that are 2/3 full, and move 1/10 or 1/5 of the water between them.
You can move like a million litres, that is the volume, but what happens if you try to dump an additional litre into them? They both overflow.
So despite being able to move back an forth 1 million litres, just one poured without 1 taken out made them overflow.

That's the difference between value and market depth.

Look here:
https://coinmarketcap.com/currencies/bitcoin/
BTC/fusd volume is right now 5 billion, but it would take only 4 million to reduce the price by -2% (market depth).

The US government selling bitcoin will never cause the market to crash and that's obvious. But what I find strange is that the bitcoin market is worth more than 1 trillion USD and the total market capitalization is almost 3 trillion USD. But why every time just a few billion USD (BTC) sold at the same time can cause a decline of 5 to 15%, it is difficult to understand because 2 or 3 billion USD is very small compared to the trading volume and as marketized capital. This is also one of the many reasons why I always believe that the market is largely manipulated and does not depend on supply and demand.

It's basic economics, when supply is more than demand price will naturally fall, or in this case when a reasonable amount of Bitcoin is obviously dumped into the market through Coinbase, it's assumed that supply has increased and the effect will be a slight price dump. But I won't panic about this development because it's just a matter of time there'll be a correction and it'll be business as usual, fundamentally Bitcoin price fluctuations depends on news, although this perticular one will not in anyway affect price increase to bull run.

The price drop of Bitcoin in the first few days of April may be a sign that organizations such as the US government are strategically trying to sell off their holdings. The market frequently sees these behaviors as positive signals that present chances for investors to profit from price declines. These price changes are generally considered as required for Bitcoin to achieve greater levels shortly, notwithstanding the possibility of some uncertainty. For my part, I believe that the correction phase is over and that Bitcoin is about to rise. Furthermore, as the halving event draws near, the window of opportunity to purchase Bitcoin at a discount is closing, which is why I'm thinking about buying during price dips. Regarding the recent massive Bitcoin transactions, especially those that might have been intended for Coinbase.

Well we are back on Green candles today, it may be short lived but we are in a strange zone
ATM, not long for the halving and the Grayscale Bitcoin selloff is still in play.

This 30,170 BTC worth $2B sent to Coinbase doesnt mean much to me, it isnt the first time
a large amount of Bitcoin get moved and it wont be the last either. There will be a reaction but
it will be very temporary and it will offer more chances for people to buy at a lower rate anyway.

This looks like Silk Road seizure coins being moved by the US government, the sooner the better
these funds are sold along with the MtGox ones too as OgNasty pointed out  

The selling of such high amount of coins will definitely be felt by the market for some period of time, maybe a few weeks or so, but it won't stop the bullish market, because it's only 1/750th of the entire supply, it's clearly not enough to objectively crash the market. The US government was selling seized coins in the past too and it never had any serious long-term effect on the price. So now is a good chance to accumulate a bit more coins if you still waiting to do so, because there's definitely going to be new ATHs in this year and maybe the next year too.

How much bitcoin is seized by the government I don't think it will be more than 5% so obviously this will not paralyze the market but with the correction still reasonable people will panic and sell because they get bad news that the US government will sell it by showing the transaction above.

Slowly bitcoin will definitely return to its starting point (in the sense that it is above $70K) the market reaction when it falls will not go up directly, in fact this is more of a stagnant price up and down not much different but when this news has dragged on the price goes back up, that's what I pay attention to even though my own speculation will not be accurate which is important to be optimistic as a Bitcoin holder.

We can't deny that it has affected the market by this news, so we should take it as it is. We can conclude that there is an impact indeed as the price plummeted to $65k or below after gaining some momentum to $71k before the weekend. Nevertheless, in the last 24 hours, market is back to being green. Nothing that we can do about it, but as we get near the halving, this could be another opportunity to buy more at $65k-$67k. And yeah we could be heading to $70k or even higher at the end of the month but not seeing huge jump to $75k. And people forget this news very quick, investors have short term memory with this kind of negative news in a bull run. So regardless if there is a leak, it will settle down and everything will be back to normal (positive sentiments).

We don't know what actually happened but for sure, they gained a lot from this sell-off, if they really did sell some of it. High likely, they did as we have seen the price declined and was also wondering at that time. But here we are, heading back to 70k again. That means, this sell-off showed that even multi-million or billion-dollar sell-off is involved, it won't cripple the btc market.


It means, a lot of people are still buying btc despite of the decline. People have their eyes on how much this top currency will be valued in the future. Hence, they are accumulating while they can. Given that the btc supply is fixed, we only have one way to go if the demand continues to pick up.

Maybe this is a little leak from an insider because if there is no news of this then I don't think it is possible that the price has dropped so much even though the price has dropped this news came.
Remember that news of leaks will always exist sometimes when people already know then they will take advantage by going short, it was worth it a few months ago where one Cointelegraph went short and profited from it.

Thanks for posting the link. So it looks like the dump had nothing to do with the government funds being moved to coinbase. If you look at the chart, you would see it’s very bitcoin bottomed pretty much.

So either it’s a coincidence that it happened the day prior or there was some leak. Someone knew about this, most likely someone at coinbase or the government and leaked it and everyone shorted.

But when the news came out, it already bottomed. So it’s strange.

It should be, but the problem is complicated now, so the bitcoins from Bitfinex hacked will be in the hand of US Gov for a while/years.

Bitfinex was hacked 119K BTC back in 2016 when the BTC price was still below $600.
Bitfinex has released BFX tokens and given to all accounts affected by the hack with a portion of 1 BFX for every $1 lost.

And all BFX token have been exchanged for cash/other coins or to buy RRT (recovery right tokens).
If the lost BTC can be recovered, the funds will be distributed to all RRT token holders with a calculation of 1 RRT = $1.

The total supply of RRT token is 30M = $30M. And the 119K BTC now worth more than $7B.

Bitfinex hacked coins should be returned to Bitfinex, right?

For me, this is great news, because the sooner they sell all the BTC they seized, the better for all of us. Although, on the other hand, you don't need to be a genius to conclude where the majority (if not all coins) will most likely end up, given that BlackRock does all its BTC transactions through the respective CEX.

It will take about a week (more or less) for the ETFs to "consume" 30k BTC with what Grayscale dumps on a practically daily basis - and so far they have sold more than 300 000 BTC in less than 3 months - I am surprised that the price of BTC has not drop to $3000 (sarcasm of course)

I think 209K BTC is too much, if we look at the total of BTC confiscated by the US Gov:
Silk Road  69,369 BTC
Bitfinex Hack 94,643 BTC
James Zhong  - 51,326 BTC

In total around 215K of BTC and the estimate balance now is 164K - dang it almost 1% of all BTC currently in circulation.
Blackrock and MicroStrategy might be buy more cheap bitcoins soon ...

source: https://dune.com/21co/us-gov-bitcoin-holdings

The US government is not using any exchange directly.
Unless they have a court order on seeing said coins to the auction so sums might be returned to victims of a said incident, they will let a 3rd party deal with it, it was previously Bitgo and now it's Anchorage Digital
https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-6.html

So this move means that AD got the lights to liquidate the funds.


https://blockchair.com/bitcoin/transaction/9c3af4b48e66565f1da1da8278036fa1dbb09f2beaaca99c3504475390ba4590
The tx happened 22 hours ago, the drop happened almost one day earlier, if we match the hours on the graph it was around the first green candle after hitting 64192.


The price collapsed before the moved!

No wonder the price collapsed again because of this negative sentiment that the US government will sell all the proceeds from confiscated bitcoins.

The news is that the US government still has around 209K bitcoins is that true? If so maybe the US government will sell on a scale.

You can see this transaction where the US Government sent the mentioned amount of bitcoin to Coinbase.

[1] https://platform.arkhamintelligence.com/explorer/tx/b614dd2e0fa06d776ee4d45973fab5ceb6e2dfebfb84e5f7bd45ef0975455240

I'm sure there will be a lot of people interested in buying those coins in an auction so it's a wonder why the government has to send it to Coinbase but I'm speculating these coins are meant to be sent for Blackrock to buy.  And I mean Coinbase is the custodial of Bitcoin ETF.

I'm sure they could really be dealing in secret if they should but it's in blockchain so let it be public.

Does anyone have the transaction Id for this transaction? Reason why is because the day prior we had a big dump from $70K. And it seems like someone might of been watching those addresses and started to short as soon as the funds got moved.

Or maybe there was some leak that the money was going to get sent to Coinbase. Either way I am wondering how it will be sold. In the past it was always auctioned off. However they sent it to an exchange which is strange. Maybe it’s for some Coinbase OTC deal?

The price dropped in the first 3 days of April and I hope they sold all of these bitcoins. The US government or any organization selling bitcoin is always a beneficial sign for the market because it will be an opportunity for us to buy DIP. Many people are confused, but with the bitcoin price adjusting in the past 3 days, it is necessary and a condition for us to conquer higher goals this April.

And I personally think that the bitcoin correction is done and now it's time for bitcoin to only go up and up. And another thing is that halving is coming closer than ever and the opportunity to buy cheap bitcoin is also gradually closing, so we should accumulate as much as possible every time bitcoin price correction.

Now those funds moved then there would really be only just that one possible approach to this on which it would really be sold and thats not a shocking news anymore. Those in government are greedy bastards and since
they've get a hold of those huge amount of coins or specifically Bitcoin and sees up the value is on rooftop then selling as of this moment is also a sweet spot. Its impossible that they wont really be having those considerations specially that they have transferred those coins. Its impossible that they would really be just staring at it when they could snipped out $2B.. No one on their right minds that they would really be
letting that kind of opportunity to let it slip.

So we should expect some significant dump before halving or after halving once this bag would really be released. Well, no one really knows on what the real purpose of such
transfer but its impossible that we cant really be able to picture out.

And so this is the reason why the sudden drop of the price in the last 48 hours? We peaked again at $71k, but it is now settled at $65k and I'm trying to find what the news that might cause the traders for a huge sell-off. Anyhow, even if this is the reason, at least the price is above $60k and for sure, this is just temporary setback. And if they have sold it already then good. We will just have to wait when the price will bounce back. And if we are long term holders, then buy at this dip and continue. We shouldn't be affected, we are already in the bull run and this kind of news is just a drop.

Its pretty funny US government uses Coinbase like that or maybe its deliberate kind of free advertising and inadvertently backing the idea of using Coinbase rather then more foreign exchanges possible to use or other avenues.    I always liked the ancient escrow site where BTC is exchanged but thats gone now sadly, theres enough newly invented paperwork to fell the rainforests for good at this point I think thats at least half the reason in many operations choosing to close down nowadays.

In terms of the amount sent, I believe they will not sell all at once or even within 1 month most likely it will distributed over time.   Same policy of a program to sell over time and ensure even liquidity as any large issuance policy is performed by.  US government being also the largest debtor to ever exist will surely be well versed in the idea of communicating with buyers to not overwhelm demand so I think its over a long time not a lump sum falling in and making a giant splash in the market.  


Short term depressant around each batch of selling.  Trading opportunity more then fundamentals.

^ I think a pretty large dump occurred just on the news. I think this could have a large effect on the price, but it will be temporary, just like GBTC which is about halfway done and the coming mtgox coins. It’ll take some time to digest all this supply but the market will and once it has we will get back into price discovery territory.

Logically, prices will drop drastically. That is a natural response from traders, but I am sure the impact of selling bitcoin will not be big as long as they sell it gradually. There are always those who want to buy all the bitcoins even if the value reaches $2B, in fact I'm sure some of them have already been sold when you create this thread.

The market response to this news may be very negative, but I don't think a major price dump will occur. As I write, the price of bitcoin is $65,600 and I will wait to see how the market responds after some time from now.

https://twitter.com/unusual_whales/status/1775213820526694594
US government sends over 30,170 Bitcoin worth $2 billion to Coinbase using Silk Road hack funds, per Bitcoin Magazine.

with information like this one, what could you speculate to happen in the next few weeks due to this?
anyone could come up a theory of what could actually happen before and after halving with just this story. but i wanna read your opinion about this one.