The U.S. government has recently moved large amounts of cryptocurrency seized from FTX and Alameda Research, sending ripples through an otherwise bullish market. Bitcoin is currently around $96K, and altcoins are also seeing positive gains thanks to a more favorable regulatory environment.
However, these new government transfers paint a different picture, sparking concerns among investors.
Let’s dive into the insight.
On December 3, Arkham Intelligence reported that 54.8 billion Shiba Inu tokens (SHIB), valued at around $1.55 million, were moved to a new wallet. This was followed by a $17.2 million transfer of Ethereum (ETH), catching the attention of blockchain analysts who track government wallet activity.
In addition to SHIB and ETH, the U.S. government moved smaller amounts of other assets, including 13.5 million Binance USD (BUSD), $36,070 in Axie Infinity (AXS), and $296,000 in various other cryptocurrencies. These included Compound (COMP), Numeraire (NMR), Wrapped Bitcoin (WBTC), and Yearn Finance (YFI).
These recent transfers are part of a larger pattern. Earlier this year, the government moved nearly $2 billion in Bitcoin, linked to cases like the Silk Road investigation. This highlights the scale of digital assets under federal control.
Currently, the U.S. government holds an eye-popping $19.48 billion in digital assets, mainly in Bitcoin, Ethereum, USDT, WBTC, and BNB. These holdings stem from several major crypto investigations, including the collapse of FTX in November 2022, which was tied to allegations of mismanagement.
The timing of these transfers, especially the $17.2 million in Ethereum, has raised concerns among market participants as crypto prices are on the rise. Ethereum recently reached $3,643, and November saw a record $183.74 billion in trading volume.
However, the 54.89 billion SHIB transfer has created selling pressure in the market.
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