According to Arkham's data, wallet addresses marked as US government (Silk Road seizure) transferred 29800 bitcoins (worth approximately $2 billion) last night, which ultimately flowed to two new addresses:

Bc1qngydl7hmgdtmuqjmtsyj3pcwszv0yn5mj6kz4c (19800 bitcoins) bc1qlap8hkt9genaljz5nt2Zlehudx63zlahr2zek (10000 bitcoins)

These bitcoins were not directly transferred to the exchange, and the exact purpose of these asset transfers cannot be determined. However, Arkham stated that 10000 BTC were likely deposited into institutional custody services.

Many people attribute Bitcoin's decline last night to this transaction from the US government. However, the timing of the US government's transfer was 00:18, but at this time Bitcoin had already fallen from a high of $70000 to $67000. From the timing perspective, it may not match, but it cannot be ruled out that the service provider cooperating with the US government in clearing operations may have sold Bitcoin in the market before executing the transfer.

On the other hand, the bankrupt exchange Mt Gox also transferred 0.02 BTC three hours ago, which is suspected to be a test transaction of crocodile transfer. As of now, Mt Gox still holds 80000 bitcoins with a total value of about 5.3 billion US dollars.

Two consecutive on chain transactions related to potential large sell offs have put tremendous pressure on the market. Bitcoin has recovered its gains from the past two days and fallen back to the level of $66000.

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