The US government has moved 3,940 Bitcoin to a Coinbase Prime wallet. Analysts say this might be one of the reasons BTC is not surging yet again.

The Bitcoin came from Banmeet Singh, a convicted drug dealer. It was seized during his trial in January 2024.

Singh was arrested in London in 2019 on drug charges. He was extradited to the US in 2023. The US Department of Justice alleged Singh ran a drug network from 2012 to 2017. It spanned several states.

Singh surrendered over 8,100 Bitcoin to US authorities. This was valued at about $150 million at the time. The DEA called it their largest ever cryptocurrency seizure.

He received a five-year prison sentence in April 2024. However, he was given credit for time served. Reports suggest he has been released. The Columbus Dispatch stated Singh planned to return to India after release.

Recent government Bitcoin sales have worried market participants. The German government has been selling Bitcoin worth approximately $2.76 billion.

On June 26, at 9:27 am UTC, 345 Bitcoin was sent to a "Flow Traders" wallet. This was part of the German sales.

The US government holds large amounts of seized Bitcoin. Arkham data shows they own about 214,000 Bitcoin. This is valued at around $13 billion. It makes the US government the largest state holder in Arkham's database.

The Mt. Gox bankruptcy estate is also selling Bitcoin. They are unloading 140,000 Bitcoin to repay victims of the 2014 collapse. This has added to investor concerns.

However, exchange balances are at six-year lows. This may help stabilize prices against these selling pressures.