US Government Transfers 10,000 Bitcoin Worth $1.92 Billion to Coinbase
As Bitcoin price consolidates below its all-time high of $99,540, the US government's transfer of significant seized Bitcoin holdings to Coinbase raises investor concerns about potential selling intentions.
US Government's Bitcoin Transfer
Market intelligence firm Arkham reported that the US government moved approximately 10,000 Bitcoin, valued at around $1.92 billion, to two wallets. One wallet holds Bitcoin worth $969 million, while the other contains approximately $949 million. This allocation is noteworthy due to the government's history of selling seized Bitcoin, which can create market pressure.
Crypto analytics firm Dune indicates that the US government currently holds 183,422 BTC, valued over $17.6 billion, accounting for roughly 0.93% of the total Bitcoin supply. A decision to sell part of these holdings could significantly impact Bitcoin's price, similar to past events following major transfers.
A Halt To Government Sales In 2025?
Historically, such transfers have increased volatility. For instance, NewsBTC reported in April on a transfer of over 30,000 Bitcoin seized from the Silk Road marketplace, coinciding with a peak Bitcoin price of $73,700. Prior to this, more than 50,000 BTC were seized from James Zhong in connection with the Silk Road.
In 2022, the government sold 9,800 BTC and planned to divest an additional 41,500 BTC. This history raises concerns that the latest transfer may jeopardize Bitcoin’s upward price momentum. However, there are emerging hopes that such sales might be curtailed in 2025.
President-elect Donald Trump is expected to propose making Bitcoin a strategic reserve asset for the US, involving government purchases of nearly 1 million BTC to address the nation’s $36 trillion national debt. This proposal has been introduced in Congress by Republican Senator Cynthia Lummis under “the Bitcoin Act,” receiving bipartisan support. With Republicans securing a House majority, optimism exists for the bill's potential enactment in the second or third quarter of 2025.
Currently, BTC is trading at $96,000, down 0.7% over the past 24 hours.
Featured image from DALL-E, chart from TradingView.com