Bitcoin News Today: US Marshals Service Holds 28,988 Bitcoins, Not 200,000

The US Marshals Service recently disclosed that it holds 28,988 bitcoins, a figure significantly lower than the previously estimated 200,000. This revelation has sparked considerable interest and speculation within the cryptocurrency community, with many investors believing that the federal government may have sold off nearly 170,000 bitcoins. The confusion arises from the misinterpretation of the specific holdings of the US Marshals Service with those of the entire federal government. The FOIA request, submitted by journalist L0la L33tz, accurately reflects that the Marshals control just under 29,000 BTC, but this only accounts for the Bitcoin under the custody of that particular agency.

On-chain data from blockchain analytics firm Arkham Intelligence provides a different picture. According to Arkham, the US government as a whole still holds approximately 198,000 BTC, worth over $23.46 billion at the current price of Bitcoin. These coins are distributed across various federal agencies and are not limited to the Marshals’ holdings. Nevertheless, the misrepresentation took hold quickly, with even US Senator Cynthia Lummis, a well-known advocate of Bitcoin, responding to the rumor. She expressed alarm at the reports and described the potential sale as a strategic blunder that would set the United States back years in the Bitcoin race.

The repercussions on the broader crypto market would be immense if the US government had indeed sold off 170,000 BTC in secret. A sale of that scale would unleash massive selling pressure and cause a strong drop in the price of Bitcoin. This would erode confidence among investors in the wider crypto market and set off a chain reaction of liquidations across other cryptocurrencies. Such a move would not only cause technical breakdowns in price structure but also cancel out the possibility of governments around the world holding crypto as a form of strategic reserve.

Moreover, such a dump would directly contradict the federal policy direction set earlier this year. In March, President Donald Trump signed an executive order instructing all federal agencies to transfer their Bitcoin and digital asset holdings to the US Treasury. The order formalized the creation of a Bitcoin reserve, which was meant to recognize the cryptocurrency as a national asset. In light of that policy, the notion that the US would quietly sell off the majority of its Bitcoin holdings seems highly improbable under the current Trump administration.

The U.S. Marshals Service is responsible for managing and disposing of assets seized during criminal investigations. The bitcoins in its possession are likely the result of such seizures, and the agency has a legal obligation to liquidate these assets in accordance with federal regulations. The recent disclosure could indicate that the Marshals have been actively selling off their bitcoin holdings, which could explain the lower-than-expected balance. The revelation also raises questions about the transparency and accuracy of information regarding government-held cryptocurrencies. The significant discrepancy between the estimated and actual holdings highlights the need for greater transparency and clarity in reporting government assets. This is particularly important in the context of cryptocurrencies, where market sentiment can be highly sensitive to news and rumors.

In conclusion, the U.S. Marshals Service's disclosure of its bitcoin holdings has shed light on the actual extent of the government's cryptocurrency reserves. While the revelation has sparked speculation and raised questions about market impact, it also underscores the importance of transparency and accurate reporting in the cryptocurrency space. As the market continues to evolve, it will be crucial for government agencies to provide clear and timely information to maintain investor confidence and stability.