The United States government’s Bitcoin address has transferred 667.624 BTC, valued at approximately $74.65 million, to a new wallet address (bc1q5…) after several weeks of inactivity.
According to blockchain intelligence firm Arkham, despite this unexpected move, the intent of which remains unclear, the U.S. government still holds 197,354 BTC worth around $21.95 billion, alongside a total crypto portfolio valued at $22.78 billion.
U.S. Government Bitcoin Transfer Panic Flash 3% Drop In Price
Speculation has grown that the transfer could suggest a potential sell-off. The resulting market anxiety, compounded by broader macroeconomic concerns, has seen Bitcoin fall over 3% in the past 24 hours.
However, historical data suggests restraint on the U.S government’s part. According to Jameson Lopp, co-founder of Casa, the last instance of U.S. government Bitcoin sales occurred in March 2023, when the Biden administration sold 9,861 BTC for $215 million.
Source: Jlopp
Despite the latest movement, a sell-off remains unlikely, as the Trump administration has long maintained the stance of stockpiling Bitcoin.
Recall that, earlier this year, “Crypto Czar” David Sacks criticized the government’s past approach to handling seized Bitcoin.
In a post on X (formerly Twitter), Sacks noted that over the past decade, the federal government sold approximately 195,000 BTC for just $366 million.
“If the government had held those coins, they would be worth over $17 billion today,” he said, calling it a costly example of the lack of a long-term crypto strategy.
On the regulatory front, recent developments have moved to strengthen the protection of Bitcoin held under government custody.
California recently became the first U.S. state to legally safeguard unclaimed cryptocurrencies from being forcibly converted to cash.
Governor Gavin Newsom signed Senate Bill 822 into law, ensuring that Bitcoin, Ethereum, and other digital assets remain in their original form when transferred to state custody under the Unclaimed Property Law (UPL).
Globally, several governments have also engaged in Bitcoin liquidations, often sparking short-term price dips.
Germany, for example, was the fourth-largest government Bitcoin holder as of January 2024, with 50,000 BTC (then worth about $2.2 billion) seized from the operators of the Movie2K piracy network.
By July 12, 2024, the Federal Criminal Police Office (BKA) had sold 49,858 BTC for roughly $2.89 billion, at an average price of $57,900 per BTC, a move that temporarily dragged Bitcoin below $60,000.
Similarly, the U.K. government in July 2025 revealed plans to liquidate over £5 billion ($6.5 billion) worth of seized Bitcoin under the “crypto storage and realisation framework,” amid fiscal pressure to narrow a widening budget gap, according to The Telegraph.
Meanwhile, on-chain data from Arkham Intelligence showed that BlackRock and Binance moved over $1.2 billion in Bitcoin within the past 24 hours.
Arthur Hayes: “More Dollars Means Bitcoin Number Goes Up”
Analysts believe that some of these transactions contributed to BTC filling the CME gap around the $110K level, following a liquidation flush on October 10.
Source: X/ RektCapital
Analysts also point out minor liquidity clusters around $107,000–$109,000, and a larger accumulation zone between $116,000–$120,000, indicating possible volatility zones if sell pressure increases.
In the macro context, BitMEX co-founder Arthur Hayes observed that recent U.S. bank earnings showed strong performance across the board, prompting major lenders like JPMorgan Chase, led by Jamie Dimon, to increase credit creation
The move he interprets as potential fuel for Bitcoin’s long-term rally amid growing liquidity.
Fabian Dori, Chief Investment Officer at Sygnum Bank, also told CryptoNews that the medium-term outlook for crypto remains constructive.
He pointed out that the latest U.S. PMI data reflected ongoing expansion in service sectors such as finance, healthcare, travel, and software, which generally support employment and earnings stability.
Analysts Target $126K–$130K BTC—But Can the Rally Survive Near-Term Pressure?
Dori concluded, “The medium-term picture for crypto assets remains supportive. Beyond the macro backdrop, crypto-specific fundamentals remain strong.”
This aligns with Shawn Young, Chief Analyst at MEXC Research, who believes Bitcoin’s sustained recovery could push it to $126,000–$130,000 in the coming weeks.
Meanwhile, Kevin Lee, Chief Business Officer at Gate.io, expects short-term downward pressure as geopolitical tensions and tariff uncertainty weigh on sentiment.
However, he views the Fed’s expected rate cut on Oct. 28–29 as a potential turning point that could ease market conditions.
The post U.S. Government Transfers $74.6M in Bitcoin After Weeks of Dormancy – Should Traders Prepare for a BTC Dump? appeared first on Cryptonews.
