In a seismic move, the U.S. government transferred $2 billion worth of confiscated Bitcoin (BTC) on Monday, exacerbating already faltering prices and igniting investor anxieties. This development comes merely two days post-presidential hopeful Donald Trump’s pledge to amass BTC reserves.

Blockchain analytics firm Arkham Intelligence reported that a wallet tagged “U.S. Government: Silk Road DOJ” shifted 29,800 BTC linked to the infamous Silk Road website to an unmarked address devoid of prior transaction history. Subsequently, the address disbursed 19,800 BTC and 10,000 BTC to two distinct addresses.

Arkham analysts hypothesized that the 10,000 BTC transfer, equivalent to $670 million, was likely a deposit to an institutional custodian or service.

Following the transfer, BTC plunged below $67,000, deepening its descent from the earlier session high of $70,000. At the time of writing, Bitcoin trades at $66,700, reflecting a 1.6% drop over the past 24 hours. The broader CoinDesk 20 Index remained stagnant during the same period.

Although potentially coincidental, the government’s transaction this morning occurred shortly after Donald Trump’s weekend declaration at the Bitcoin 2024 conference in Nashville. Trump promised to establish a “strategic national Bitcoin reserve” if elected.