Historically, crypto sell-offs linked to government transactions have stirred the market, but the sentiment remains neutral this time.
US President Donald Trump’s administration has transferred Bitcoin and Ether worth approximately $10.23 million from the government crypto holdings, sparking speculation on whether it’s a selloff or a stockpiling in progress.
According to a social media post on X from Arkham Investments, crypto analytics firm Lookonchain reported a series of transactions tied to the US government. The post stated that the US government transferred 97 Bitcoin (BTC) valued at $8.46 million and 884 Ethereum (ETH) worth $1.77 million on March 28. Arkham noted:
“The US Government just moved $8.46M BTC from Sae-Heng Confiscated Funds.”
Arkham Investment noted that before the said on-chain activity, the government crypto holdings maintained at least 198,109 Bitcoins. Considering the latest crypto shift and believing that all the related addresses were still under the federal government’s control, the government crypto holdings should have at least 198,012 BTC valued at $17.22 billion. The US government also holds another 59,965 ETH, worth $119.7 million, making the US one of the largest institutional holders of cryptocurrency. Many of the assets in the government crypto holdings emanate from civil and criminal seizures, such as the 2016 Bitfinex hack, where the authorities confiscated 94,000 BTC, currently valued at over $8 billion.
The latest transfers from the US government crypto holdings follow another transfer by federal authorities involving 298.936 AVAX confiscated from one Brian Krewson two weeks ago. The shift in BTC comes amid heightened speculation regarding the possibility of a US strategic bitcoin reserve, which President Donald Trump’s Executive Order recently fueled on March 6.
Historically, large crypto transfers such as the ones initiated by the government have created a frenzy that exerted downward pressure on digital asset prices. A case in point was a December 2024 $1.9 billion Bitcoin shift to Coinbase Prime that heralded a 5% price drop over the following three days. Similar situations in April, June, and August 2024 also caused short-term selloffs, but the flagship cryptocurrency quickly rebounded. Nonetheless, this time round, the price of Bitcoin remained around $87,200 and Ethereum at near $2,000, meaning the market sentiment remained neutral after the transfer.
On March 18, 2025, President Donald Trump issued an executive order establishing a US Strategic Bitcoin Reserve. The critical directive mandated all federal agencies to report their government crypto holdings to the Secretary of the Treasury within 30 days. It now appears that the shift surrounding the $10.3 million worth of BTC and ETH could be part of the government’s broader effort to consolidate its crypto holdings and not necessarily a preparation for a selloff.
President Donald Trump issued an Executive Order Establishing a strategic bitcoin reserve on March 18, 2025. The executive order and related legislation are meant to centralize digital asset holdings across the federal government and optimize oversight and management of crypto as a US reserve asset.
Supporters of this concept believe that a Bitcoin reserve could reinforce economic resilience. The Bitcoin reserve offers a non-sovereign hedge immune to monetary policy manipulation.
According to available data, the United States has the largest amount of Bitcoin, 198,109 BTC, worth $16.52 billion. It is followed by China, with 194,000 BTC worth at least $16.2 billion. Other substantial Bitcoin holders are the UK, with 61,245 BTC worth $5.12 billion, and Ukraine, with an estimated 46,351 BTC worth $3.85 billion.
