The US government transferred $241 million worth of Bitcoin to Coinbase

Blockchain analytics firm Lookonchain has reported that US government wallets have transferred $241 million worth of Bitcoin to Coinbase.

After this one transfer the price of Bitcoin fell below $61,000. However, CryptoQuant CEO Ki Yong Ju suggested that this sale will not affect the market.

“Coinbase Prime managed 20,000-49,000 BTC of sell-side liquidity daily during periods of strong spot ETF inflows and 6,000-15,000 BTC daily during periods of low spot ETF inflows”, explain he.

The US holds the largest amount of Bitcoin in the world, with a reserve of $13 billion. Much of this BTC originated from confiscations related to the now-defunct Silk Road and the famous Bitfinex hack. Interestingly, some of the seized BTC from Silk Road was purchased by investor Tim Draper in 2014.

In the last month, the German government too sold Bitcoin worth almost $500 million.

This selling contributed to bearish sentiment and the accompanying market correction. The German government became a large holder of Bitcoin after it shut down Movie2014K, a popular pirated streaming website, in 2 and confiscated BTC from one of its operators. China and the United Kingdom also rank among the largest holders of Bitcoin, with $11.8 billion and $3.7 billion, respectively.