The U.S. government’s latest on-chain activity has drawn attention across the crypto sector after over 667 BTC, valued at roughly $74.6 million, was moved to a fresh wallet on October 14. Data from Arkham Intelligence confirmed the transaction, prompting renewed speculation about potential government selloffs and policy-driven moves related to the nation’s digital asset holdings.
U.S.Govt. Moves $74M in Bitcoin
According to blockchain records, the transfer originated from a wallet tagged as government-controlled. The transaction split 667.62 BTC into two parts, about 15 BTC was sent to one wallet, while the remaining 652.6 BTC appeared to be redirected to another address also believed to be under U.S. government control. On-chain analyst IT Tech described the transfer as an “internal movement,” suggesting it was not linked to any liquidation activity.
Despite those reassurances, the transaction triggered volatility in Bitcoin markets. Within hours of the transfer, BTC prices slid from around $113,000 to the $110,000 range as traders speculated that the government might be preparing to offload some of its holdings amid ongoing fiscal uncertainty and the prolonged government shutdown. Market watchers noted the lack of official communication regarding the motive behind the movement.
Blockchain analytics data indicate that the U.S. government currently controls approximately 197,354 BTC worth more than $22 billion at current prices largely seized from criminal cases and forfeitures over the past decade. This transfer came as Federal Reserve Chair Jerome Powell prepared to deliver remarks later in the day, with investors awaiting clues on the central bank’s stance toward rate adjustments. Any dovish signal from Powell could influence crypto sentiment, which remains fragile.
The timing of the transfer has also renewed debate over the U.S. government’s broader digital asset strategy. Recent statements from Treasury Secretary Scott Bessent have pointed to growing official interest in accumulating Bitcoin as part of a potential “Strategic Bitcoin Reserve.” The idea, initially advanced under President Donald Trump’s administration, envisions building a sovereign digital asset stockpile to strengthen national reserves alongside gold and other strategic commodities. Bessent reportedly said the Treasury currently holds about $17 billion worth of Bitcoin and intends to expand those reserves in coming quarters.
Meanwhile, the market’s short-term reaction reflected cautious trading. Bitcoin hovered near $111,100 at press time, down nearly 3% over 24 hours. Trading volume fell 18%, suggesting lower participation as volatility rose. Data from CoinGlass showed open interest in Bitcoin futures increasing slightly to $73.55 billion, hinting at mixed positioning among traders. While derivatives activity grew on Binance, open interest on CME futures fell over 5%, indicating reduced institutional exposure ahead of Powell’s remarks. Analysts highlighted liquidity support around the $107,000–$109,000 zone but warned that price pressure could persist if uncertainty surrounding government actions and monetary policy continues.
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