Bitcoin News Today: U.S. Government Holds 198,000 BTC Worth $23.5 Billion Quelling Sell-Off Speculation

The U.S. government’s Bitcoin holdings remain entirely untouched, with on-chain data confirming that 198,000 BTC—valued at approximately $23.5 billion—are still in government-controlled wallets. This figure, verified by blockchain analytics firm Arkham Intelligence, directly counters recent rumors of a large-scale sale of seized cryptocurrency assets. The reserves are distributed across multiple addresses managed by agencies including the U.S. Marshals Service (USMS), FBI, Department of Justice (DOJ), and Drug Enforcement Administration (DEA), with no movements recorded in the last four months [1].

The confusion arose from a Freedom of Information Act (FOIA) response by the USMS, which disclosed 28,988 BTC in one of its wallets. However, Arkham emphasized that this amount represents only a fraction of the total holdings and does not reflect the broader government portfolio [1]. The firm’s analysis highlights that the majority of the 198,000 BTC stems from two major historical seizures: the 2016 Bitfinex hack and the Silk Road investigation. For instance, 114,599 BTC (worth $13.65 billion) were recovered from Ilya Lichtenstein and Heather Morgan, who were arrested in 2022 for allegedly stealing funds from the 2016 Bitfinex breach. These funds, pending legal proceedings, may eventually be returned to victims via restitution [1]. Another 69,369 BTC ($8.26 billion) were seized from “Individual X” in 2020, following a case where the individual voluntarily forfeited assets linked to Silk Road [1].

The stability of these reserves has quelled speculation about government sell-offs, which had previously fueled volatility in the Bitcoin market. Analysts note that while the absence of movement suggests a long-term holding strategy, the sheer size of the stash—nearly 0.9% of the total Bitcoin supply—could theoretically impact prices if liquidated. However, such a scenario remains unlikely given the legal and procedural complexities of asset forfeiture and restitution. The government’s approach mirrors broader trends in institutional Bitcoin management, where large holders often adopt a “HODL” strategy to avoid market disruption [1].

Bitcoin’s price has remained in a consolidation phase between $115,724 and $122,077, with technical indicators suggesting a bullish bias. The 50-period simple moving average (SMA) at $118,412 remains above the 100- and 200-SMA lines, which continue to trend upward. Yet, declining trading volume during this consolidation period signals market indecision [1]. A breakout above $122,077 could propel Bitcoin toward $125,000, while a drop below $115,724 might trigger a deeper retracement.

The U.S. government’s Bitcoin holdings remain a critical focal point for the crypto market, balancing legal obligations with potential macroeconomic implications. For now, the data underscores a commitment to maintaining the status quo, offering both reassurance and intrigue as Bitcoin approaches record levels.

Source: [1] [US Government Bitcoin Reserves Still Intact: 198,000 BTC Remain Untouched] [https://bitcoinist.com/us-government-bitcoin-reserves-still-intact-198000-btc-remain-untouched/]