US government-linked wallets moved over $1 billion in Bitcoin on Oct. 8 as BTC prices fell and more coins reached Coinbase Prime.

On Oct. 8, Galaxy Research flagged the transfer of 12,267 BTC, valued at approximately $1 billion, from a government-controlled address holding assets recovered from the 2016 Bitfinex hack.

The Bitcoin initially moved to an unidentified intermediary wallet before blockchain analyst EmberCN reported that 9,000 BTC, worth about $739 million, had reached Coinbase Prime, Coinbase's institutional trading and custody platform.

The transactions extended three consecutive days of government-linked Bitcoin movements, coinciding with a roughly $4,000 decline in the cryptocurrency's price. During the period, Bitcoin's price fell from about $86,500 when the transfers began late on Oct. 6 to around $82,500 on Thursday, according to EmberCN.

However, transfers to Coinbase Prime do not prove the Bitcoin was liquidated or that the transactions contributed to the price decline. The platform provides custody and trading services, allowing assets to be deposited without an immediate sale.

The Oct. 8 movement followed substantial transfers that Galaxy Research had documented over the preceding two days.

On Oct. 7, the firm reported that government-linked wallets sent approximately 8,428 BTC to Coinbase Prime, following another 834 BTC the previous day. Together, those transactions involved about 9,261 BTC, valued at roughly $770 million.

Nearly half of those assets originated from Bitcoin recovered following the Bitfinex hack, while another portion was linked to previously identified cryptocurrency seizures involving Binance.

However, Galaxy's analysis also identified 2,456 BTC originating from wallets not previously classified as government holdings.

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