Bitcoin News Today: U.S. Government Holds 198,000 BTC ($23.5B) as Sell-Off Rumors Debunked by Arkham, FOIA Confusion

The U.S. government’s Bitcoin holdings remain intact at approximately 198,000 BTC, valued at $23.5 billion as of mid-2025, despite persistent rumors of a large-scale sell-off. Blockchain analytics firm Arkham Intelligence confirmed that no significant liquidation has occurred, with assets seized by agencies like the DOJ, FBI, and DEA remaining untouched in wallets for over four months [1]. Earlier claims suggesting 80% of government-held Bitcoin had been sold were traced to a misinterpretation of a FOIA report focused narrowly on U.S. Marshals Service balances, which control only 28,988 BTC ($3.4 billion) of the total reserve [4].

The confusion highlights the complexity of tracking government crypto assets across multiple agencies. While the U.S. Marshals Service’s holdings have drawn attention, the broader reserve includes seized assets from cases like the Bitfinex hack, underscoring the government’s strategic approach to managing digital property [5]. This clarity comes ahead of a pivotal July 30 report by President Trump’s digital assets task force, which may outline policies for a formal “Strategic Bitcoin Reserve” using existing seized assets rather than new purchases. The proposed framework aligns with calls to build reserves without taxpayer costs while sidestepping privacy concerns tied to central bank digital currencies (CBDCs) [6].

Market reactions have been mixed. While confirmation of the reserve’s stability alleviated some investor anxiety, Bitcoin prices dipped below $118,000 in early July amid regulatory uncertainty [7]. Analysts remain divided: some view the government’s refusal to liquidate as a vote of confidence in Bitcoin’s long-term value, while others caution against potential volatility if a sell-off were to occur. The U.S. is not alone in holding significant BTC—North Korea’s Lazarus group, for instance, has liquidated over $1.4 billion in Bitcoin since March 2025, illustrating divergent national strategies [8].

The debate over transparency and governance persists. Critics question how these assets are managed, particularly given conflicting reports. However, verified sources agree the reserve remains untouched, and the sell-off narrative has been debunked. As the crypto landscape evolves, the government’s handling of its Bitcoin holdings will remain a key focus for investors and policymakers, with upcoming policy decisions potentially reshaping the sector’s regulatory and economic framework.

Sources:

[1] [U.S. Government Still Holds Massive Bitcoin Reserve, Despite Sell-Off Rumors] (https://coindoo.com/u-s-government-still-holds-massive-bitcoin-reserve-despite-sell-off-rumors/)

[4] [Bitcoin News Today: U.S. Gov’t Holds 198,012 BTC ($23.5B) - FOIA Confusion Clarified] (https://www.ainvest.com/news/bitcoin-news-today-gov-holds-198-012-btc-23-5b-foia-confusion-clarified-2507/)

[5] [U.S. Government Holds 198,000 BTC Despite FOIA Report] (https://www.ainvest.com/news/bitcoin-news-today-government-holds-198-000-btc-foia-report-showing-28-988-marshals-wallets-2507/)

[6] [Bitcoin’s Demise Is Inevitable (Cryptocurrency:BTC-USD)] (https://seekingalpha.com/article/4802962-bitcoin-demise-is-inevitable)

[7] [Bitcoin Price Today: Dips Below $118k Amid Regulatory Caution] (https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-dips-below-118k-amid-regulatory-caution-altcoins-plunge-4149761)

[8] [Top Government Bitcoin Holders: U.S. Holdings in Question as BTC Corrects to $119,000] (https://www.msn.com/en-us/money/markets/top-government-bitcoin-holders-us-holdings-in-question-as-btc-corrects-to-119000/ar-AA1Dtr6X)