Bitcoin News Today: U.S. Government Bitcoin Holdings Stable at 198,000 BTC, Debunking $20B Liquidation Rumors

The U.S. government’s Bitcoin holdings of approximately 198,000 BTC have remained stable amid widespread speculation of a $20 billion liquidation, according to blockchain analytics firm Arkham Intelligence. Public transaction records and agency statements confirm no large-scale sales or transfers of government-held Bitcoin since at least April 2025, directly refuting unverified claims of a 170,000 BTC sale [1]. These rumors, amplified by social media and forums, initially triggered short-term market volatility but had no significant impact on broader cryptocurrency markets such as Ethereum or altcoins. Analysts emphasize that the government’s approach—prioritizing transparency and structured auctions—mitigates potential disruptions to Bitcoin’s liquidity.

The confusion stemmed from a FOIA request that highlighted the U.S. Marshals Service’s (USMS) 28,988.356 BTC holdings, leading to misinterpretations about the total government stash. Arkham Intelligence clarified that the 198,000 BTC figure includes assets across multiple agencies, including the FBI, IRS, and DEA, with no changes to the overall strategy [1]. Independent journalist L0la L33tz noted that “the reported USMS holdings only represent a fraction of the total Bitcoin held by the U.S. government, leading to widespread confusion.” Historical precedents, such as U.S. Marshals’ auctions of seized Bitcoin, have shown short-term price fluctuations but no long-term effects, reinforcing the stability of the market’s absorption of such sales [1].

On-chain data from July 2025 confirmed no sell-off activity, aligning with Arkham’s analysis of wallet transactions [1]. The firm warned against “misleading headlines or fabricated wallet activity” that could distort market perceptions. Coincu’s research team echoed these findings, highlighting that while auctions may create temporary ripples, the current environment remains resilient. Bitcoin’s price, which traded at $118,474.36 on July 24, 2025, has risen 26.79% over 90 days, with a 60.86% market dominance and a $2.36 trillion market cap [2]. Analysts attribute this stability to institutional confidence and regulatory clarity, though they caution that future announcements could influence short-term dynamics.

The government’s inactivity since April 2025 underscores its preference for controlled auctions, a practice that historically minimizes market shocks. For instance, past sales of seized Bitcoin, such as those from the Silk Road case, followed public notifications and were absorbed by buyers without altering Bitcoin’s broader trajectory [1]. Arkham CEO Miguel Morel emphasized the need for rigorous analysis to prevent misinformation from spilling into market decisions, noting that the $23.5 billion value of the 198,000 BTC holdings—calculated using July 2025 pricing—remains intact [1].

Market participants remain cautious about potential future sales but acknowledge the current inactivity as a stabilizing factor. The U.S. government’s structured approach, combined with robust institutional adoption trends, suggests continued liquidity without abrupt price shocks. As Bitcoin’s trajectory remains tied to macroeconomic and regulatory developments, the focus shifts to how transparency in asset management will shape investor sentiment.

Sources:

[1] [title1: U.S. Government Retains 198,000 BTC Amid Rumor Denials] [url1: https://coinmarketcap.com/community/articles/6881b6b8cdd3e84fefeeda6c/]

[2] [title2: Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 04:24 UTC on July 24, 2025] [url2: https://coinmarketcap.com/community/articles/6881b6b8cdd3e84fefeeda6c/]