U.S. Government Transfers $74.6M in Bitcoin After Weeks of Dormancy – Should Traders Prepare for a BTC Dump?
The United States authorities’s Bitcoin tackle has transferred 667.624 BTC, valued at roughly $74.65 million, to a new pockets tackle (bc1q5…) after a number of weeks of inactivity.
According to blockchain intelligence agency Arkham, regardless of this sudden transfer, the intent of which stays unclear, the U.S. authorities nonetheless holds 197,354 BTC price round $21.95 billion, alongside a whole crypto portfolio valued at $22.78 billion.
U.S. Government Bitcoin Transfer Panic Flash 3% Drop In Price
Speculation has grown that the switch may counsel a potential sell-off. The ensuing market anxiousness, compounded by broader macroeconomic considerations, has seen Bitcoin fall over 3% in the previous 24 hours.
However, historic information suggests restraint on the usgovernment’s half. According to Jameson Lopp, co-founder of Casa, the final occasion of U.S. authorities Bitcoin gross sales occurred in March 2023, when the Biden administration offered 9,861 BTC for $215 million.
Despite the newest motion, a sell-off stays unlikely, because the Trump administration has lengthy maintained the stance of stockpiling Bitcoin.
Recall that, earlier this yr, “Crypto Czar” David Sacks criticized the federal government’s previous method to dealing with seized Bitcoin.
In a post on X (previously Twitter), Sacks famous that over the previous decade, the federal authorities offered roughly 195,000 BTC for simply $366 million.
“If the federal government had held these cash, they might be price over $17 billion at the moment,” he mentioned, calling it a expensive instance of the shortage of a long-term crypto technique.
On the regulatory entrance, latest developments have moved to strengthen the safety of Bitcoin held underneath authorities custody.
California just lately grew to become the primary U.S. state to legally safeguard unclaimed cryptocurrencies from being forcibly transformed to money.
Governor Gavin Newsom signed Senate Bill 822 into law, making certain that Bitcoin, Ethereum, and different digital belongings stay in their unique kind when transferred to state custody underneath the Unclaimed Property Law (UPL).
Globally, a number of governments have additionally engaged in Bitcoin liquidations, usually sparking short-term worth dips.
Germany, for instance, was the fourth-largest authorities Bitcoin holder as of January 2024, with 50,000 BTC (then price about $2.2 billion) seized from the operators of the Movie2K piracy community.
By July 12, 2024, the Federal Criminal Police Office (BKA) had sold 49,858 BTC for roughly $2.89 billion, at a mean worth of $57,900 per BTC, a transfer that quickly dragged Bitcoin beneath $60,000.
Similarly, the U.Ok. authorities in July 2025 revealed plans to liquidate over £5 billion ($6.5 billion) price of seized Bitcoin underneath the “crypto storage and realisation framework,” amid fiscal stress to slim a widening funds hole, in response to The Telegraph.
Meanwhile, on-chain data from Arkham Intelligence confirmed that BlackRock and Binance moved over $1.2 billion in Bitcoin inside the previous 24 hours.
Arthur Hayes: “More Dollars Means Bitcoin Number Goes Up”
Analysts imagine that some of these transactions contributed to BTC filling the CME hole across the $110K degree, following a liquidation flush on October 10.
Analysts additionally point out minor liquidity clusters round $107,000–$109,000, and a bigger accumulation zone between $116,000–$120,000, indicating potential volatility zones if promote stress will increase.
In the macro context, BitMEX co-founder Arthur Hayes observed that latest U.S. financial institution earnings confirmed robust efficiency throughout the board, prompting main lenders like JPMorgan Chase, led by Jamie Dimon, to extend credit score creation
The transfer he interprets as potential gasoline for Bitcoin’s long-term rally amid rising liquidity.
Fabian Dori, Chief Investment Officer at Sygnum Bank, additionally informed CryptoInformation that the medium-term outlook for crypto stays constructive.
He identified that the latest U.S. PMI data mirrored ongoing enlargement in service sectors equivalent to finance, healthcare, journey, and software program, which usually assist employment and earnings stability.
Analysts Target $126K–$130K BTC—But Can the Rally Survive Near-Term Pressure?
Dori concluded, “The medium-term image for crypto belongings stays supportive. Beyond the macro backdrop, crypto-specific fundamentals stay robust.”
This aligns with Shawn Young, Chief Analyst at MEXC Research, who believes Bitcoin’s sustained restoration could push it to $126,000–$130,000 in the approaching weeks.
$12B in Bitcoin open curiosity simply vanished — however is the “massacre” actually a reset earlier than the subsequent rally to $130K? BTC rebounds to $115K as leverage hits multi-year lows.#Bitcoin #Leveragehttps://t.co/Ni5txnTjLF
— Cryptonews.com (@cryptonews) October 13, 2025
Meanwhile, Kevin Lee, Chief Business Officer at Gate.io, expects short-term downward stress 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 level that might ease market circumstances.
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