Comprehensive Analysis of US Government Bitcoin Reserves
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Recently, speculation emerged about the US government allegedly offloading a significant portion of its Bitcoin reserves. However, these rumors were dispelled following the release of new on-chain data. Arkham Intelligence, a prominent US-based blockchain analytics firm and public data platform, revealed that the US Government still possesses at least 198,000 BTC, which is currently valued at roughly $23.5 billion.
These Bitcoin reserves are distributed across various addresses managed by several governmental agencies, including the US Marshals Service (USMS), FBI, Department of Justice (DOJ), Drug Enforcement Administration (DEA), and US Attorney’s Offices. Contrary to widespread claims suggesting a major sell-off, there has been no movement of these holdings in the past four months, confirming that the government maintains its Bitcoin reserves intact.
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The rumors, which gained traction on social media, stemmed from a misinterpretation of a Freedom of Information Act (FOIA) response from the USMS. The response indicated holdings of only 28,988 BTC, which represents a fraction of the total reserves.
US Government Bitcoin Holdings: A Detailed Overview
Arkham Intelligence’s data indicates that a significant portion of the US Government’s 198,000 BTC holdings—worth about $23.5 billion—originates from two pivotal historical seizures: the Bitfinex hack and the Silk Road investigation.
The largest chunk stems from the 2022 seizure involving Ilya Lichtenstein and Heather ‘Razzlekhan’ Morgan, apprehended six years post the 2016 Bitfinex hack. Authorities confiscated 94,000 BTC from the duo, with additional recoveries bringing the total to 114,599 BTC, equivalent to $13.65 billion today. These funds, initially stolen from Bitfinex customers, may be returned to victims through restitution, pending legal outcomes.
Another major contribution is the seizure of 69,369 BTC (currently valued at $8.26 billion) from an entity known as ‘Individual X’ in 2020. This individual reportedly exploited a vulnerability to access Silk Road funds years after the dark web marketplace’s closure. The US Government secured the BTC following ‘Individual X’s voluntary forfeiture, marking a landmark case.
Arkham also identified other BTC sources held by US authorities, including smaller seizures from criminal activities and forfeitures from legal settlements. These holdings are dispersed across wallets associated with agencies like the US Marshals Service, FBI, and DOJ.
This transparency effectively debunks recent rumors of government sell-offs and clarifies public misconceptions. While the majority of the seized BTC remains idle, market participants are keenly observing for any signs of movement, given the potential market impact if liquidated. For now, these funds remain untouched, providing a layer of assurance as Bitcoin trades near its all-time highs.
Bitcoin Price Analysis: Navigating Between Key Technical Levels
Bitcoin is currently trading within a tight range between $115,724 and $122,077, as depicted in the 4-hour chart. This lateral movement follows the robust rally from July, which propelled BTC toward new all-time highs. Since then, the price has struggled to surpass the $122,077 resistance, while buyers have consistently defended the $115,724 support level.
The chart illustrates that BTC is hovering around the 50-period simple moving average (SMA) at $118,412, slightly above the 100-SMA ($116,614) and the 200-SMA ($111,678), both of which are trending upward—indicating a bullish macro trend. However, declining volume during this consolidation phase reflects market indecision.
A breakout above $122,077 could ignite renewed momentum towards the next psychological threshold at $125,000. Conversely, losing the $115,724 support may engender a deeper retracement, with the 100-SMA and 200-SMA serving as dynamic support zones.
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