As Bitcoin consolidates below its all-time high of $99,540, the US government's recent transfer of seized Bitcoin holdings to Coinbase has sparked investor speculation about potential selling pressure.
Key Details of the Bitcoin Transfer
Market intelligence firm Arkham reported that the US government moved 10,000 BTC (worth $1.92 billion) to two wallets:
- Wallet 1: ~$969 million in BTC
- Wallet 2: ~$949 million in BTC
This transfer aligns with the government’s history of liquidating seized Bitcoin, which often triggers market volatility.
👉 Why governments holding Bitcoin matters for crypto investors
US Government’s Bitcoin Holdings
According to Dune Analytics:
- Total holdings: 183,422 BTC ($17.6+ billion)
- Percentage of supply: 0.93%
Past sales (e.g., 9,800 BTC in 2022) have correlated with price dips, raising concerns about the latest transfer’s timing amid Bitcoin’s rally.
Potential Policy Shift in 2025
Speculation suggests a halt to government Bitcoin sales by 2025, driven by:
Trump’s Proposed Bitcoin Reserve Strategy:
- Plans to designate BTC as a strategic reserve asset to address the $36 trillion national debt.
- Potential government acquisition of 1 million BTC.
Legislative Support:
- Senator Cynthia Lummis’s Bitcoin Act has bipartisan backing.
- Expected enactment if Republicans secure a House majority in 2025.
Market Reaction
- Current BTC price: $96,000 (-0.7% 24-hour change).
- Analysts monitor whether this transfer mirrors prior sell-offs that disrupted bullish trends.
FAQ
Q: Why did the US government transfer Bitcoin to Coinbase?
A: While unconfirmed, historical patterns suggest preparations for liquidation, though 2025 policy changes could alter this trend.
Q: How much Bitcoin does the US government own?
A: 183,422 BTC (~0.93% of total supply), valued at $17.6+ billion.
Q: Could this transfer crash Bitcoin’s price?
A: Large sell-offs historically increase volatility, but long-term demand may offset short-term dips.
👉 Learn how Bitcoin’s scarcity shields it from market shocks
Q: What is the Bitcoin Act?
A: A proposed bill to make Bitcoin a reserve asset, potentially ending government sales and stabilizing markets.
Featured image: TradingView chart
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