Bitcoin News Today: U.S. Government Maintains 198000 BTC as 85% Sell-Off Rumors Debunked Market Stabilizes

The U.S. government maintains a substantial Bitcoin (BTC) reserve of approximately 198,000 units, equivalent to $23.5 billion, according to blockchain intelligence firm Arkham Intelligence. This confirmation follows recent speculation about a large-scale sell-off of the government’s holdings, which had briefly destabilized market sentiment before being debunked by independent analysis. The assets, acquired through criminal seizures including the Bitfinex hack, are distributed across federal agencies such as the FBI, DOJ, and U.S. Marshals Service, with no evidence of transactions in the past four months [1].

The rumors, which suggested an 85% liquidation of the government’s BTC, originated from partial disclosures in a Freedom of Information Act (FOIA) report earlier this year. The report revealed details about 28,988 BTC held by the U.S. Marshals Service but left gaps in the full scope of government-owned cryptocurrency. Arkham’s analysis later clarified that the broader reserves remained untouched, with no significant sales occurring since acquisition [2]. This clarification reassured investors who had reacted to the initial misinformation, as Bitcoin prices stabilized after a brief dip tied to the speculative narrative.

Market stakeholders now emphasize the U.S. government’s role as a “Bitcoin whale,” reinforcing institutional confidence in the asset’s legitimacy. Analysts suggest the government’s inaction reflects a deliberate strategy to preserve seized assets until a formal sale framework is established. “The lack of activity signals a long-term holding approach, aligning with regulatory priorities for transparency,” one commentator noted, highlighting the government’s potential to influence market dynamics through future decisions [4].

While no immediate sales are planned, the sheer volume of the government’s holdings—nearly 1% of the total circulating Bitcoin supply—means its eventual actions could shape broader market sentiment. Arkham’s reports also addressed earlier misinterpretations of wallet activity, such as claims that 170,000 BTC had been liquidated, which were found to misrepresent partial transactions [5]. This highlights the importance of accurate reporting in a market prone to volatility from misinformation.

Looking ahead, the government’s BTC reserves may serve as a precedent for institutional adoption, particularly as products like the iShares Bitcoin Trust (IBIT) gain traction. However, the current focus remains on maintaining the status quo, with officials underscoring the need for clear guidelines in handling confiscated digital assets. The stability of the government’s holdings—unchanged for months—suggests a measured approach to managing a high-profile asset class, balancing regulatory oversight with market expectations.

Source:

[1] [Arkham: U.S. Government Still Holds 198,000 BTC](https://crypto-economy.com/arkham-u-s-government-still-holds-198000-btc-dispelling-sell-off-rumors/)

[2] [U.S. Government Bitcoin Reserves Still Intact](https://bitcoinist.com/us-government-bitcoin-reserves-still-intact-198000-btc-remain-untouched/)

[4] [Arkham: The U.S. Government Has Not Sold 170,000 BTC](https://news.futunn.com/en/post/59559348/arkham-the-us-government-has-not-sold-170000-btc-and)

[5] [Arkham Clarifies US Gov $24B Bitcoin Holdings](https://crypto.news/arkham-confirms-u-s-governments-24b-bitcoin-holdings-debunking-85-sell-off-rumor/)