US Government Transfers Almost $12 Million ETH to Unidentified Wallet, Price Drop Ahead?

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US Government Transfers Almost $12 Million ETH to Unidentified Wallet, Price Drop Ahead?

The United States government has transferred a staggering amount of Ethereum (ETH), up to the tune of $12 million according to a report on July 1. This comes shortly after the government sent almost $240 million in Bitcoin to the Coinbase exchange.

These significant transfers have caught the attention of the crypto community with investors worried about the potential future price reaction of the asset. Recall that when the aforementioned amount of Bitcoin was moved to Coinbase, the value of the coin witnessed a notable drop towards the $60k mark. Thus, market participants are worried about the price of ETH mirroring similar movements as a result of the latest transfer.

Read Also: US Government’s Strategic Bitcoin Movement to Coinbase Sparks Market Speculation

US Govt Sends Over 3,300 ETH to Unknown Wallet

In a recent development that has ignited speculations across the crypto market, Arkham Intelligence, a blockchain insight platform, revealed the latest movement of ETH by the US government. According to its report, the entity shifted exactly 3,375 ETH, valued at $11.75 million to an unidentified wallet. Even though the reason for the transfer is not known, it is interesting because it comes ahead of the decision on a spot Ethereum ETF S-1 filings by the U.S. SEC.


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US government transfers ethereum

Source: Arkham Intelligence

There have been conjectures that the US government is looking to capitalize on the potential price rally that may be triggered by the launch of the ETFs. It is important to note that transfers of cryptocurrencies to wallet addresses often signify accumulations rather than sell-offs. However, if the government decides to sell its holdings, it could affect the short-term price of ETH

The Ethereum transferred were part of the assets seized during the case against Estonian Sergei Potapenko and Ivan Turogin. The two individuals were extradited to the United States on May 30 to face trial for a $575 million cryptocurrency fraud. Potapenko and Turogin were arrested on an 18-count indictment on November 20, 2022. The arrest led to the seizure of significant crypto assets including the recently transferred ETH.

At the time of writing, Arkham Intelligence data shows that the US government now holds a total of $13.8 billion worth of crypto assets. Among the assets held include 50,524 ETH (valued at $175.2 million), 213,534 BTC (worth $13.40 billion), 750,722 ($47 million) WBTC, and 40,285 BNB (valued at $23.3 million).

us government holding

Source: Arkham Intelligence

Ethereum (ETH) Price Today

Meanwhile, the price of ETH has witnessed an uptick in the last 24 hours. According to data from Coinstats, ETH is currently trading at $3,455, representing a 1.86% increase over the last day. What is more, the trading volume over the recorded time has surged by 60.67% to $11.4 billion with a live market cap of $415.5 billion.

Moreover, Ethereum (ETH) has traded between the lows and highs of $3,386.19 and $3,514.17. Notably, the current value of ETH is still 29.2% below its all-time high of $4,878 reached during the bull run in November 2021. In the last seven days, Ethereum has traded between the range of $3,259.49 and $3,512.14.

Read Also: Sony Acquires Amber Japan, Marking Entry into the Crypto Industry

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Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.