U.S government moves $1.9 million in Alameda-linked altcoins – Selling or reshuffling？

In a recent development, the US government transferred $1.9 million of Alameda funds to Coinbase Prime.

Render (RNDR), Uniswap ($UNI), The Sandbox ($SAND), Mask Network ($MASK), and Axie Infinity ($AXS) were moved from a wallet that Arkham identified as belonging to the US Government.

Source: ArkhamUSG moves funds, and the crowd gets divided

For background, more than three years ago in 2023, the USG had seized $13 million worth of Alamedas assets from Binance.

Additionally, Coinbase Prime worked as the institutional arm of the exchange. As anticipated, the movement of these whales sparked worries about a potential government sale.

Many in the cryptocurrency community said that this was simply a staged liquidation process or a part of custody management, with no intention of selling.

Source: X

Still, a lot of people thought otherwise.

Source: XMarket dynamics raises concerns

This came as RNDR was trading at $1.99 following a 9.5% decline over the previous day. Meanwhile, at the time of writing, $SAND was down 4.47% at $0.06682, $MASK was down 4.45% at $0.4231, and $AXS was down 6.05% at $1.09 at the same time.

This might not, however, indicate selling pressure because the global crypto market cap was down 3.07% from the day before, trading at $2.46 trillion.

That said, the Crypto Fear and Greed Index, which was in the “Extreme Fear” zone at the time of publication, also reflected the bearish mood.

Source: AlternativeSelling or reshuffling

The U.S. government has traditionally held public auctions to sell confiscated Bitcoin [BTC], especially in past instances like Silk Road.

Because of that precedent, the market assumed that newly forfeited Bitcoin would likewise be liquidated, which influenced expectations.

A policy change, however, is represented by Executive Order 14233, which mandates that some Bitcoin that has been seized be kept as a strategic asset rather than being sold.

Final Summary

• The U.S government moved RNDR, $UNI, $SAND, $MASK, and $AXS tokens to Coinbase Prime.
• The overall market downturn and Executive Order 14233 suggest that the USD is not selling.