Recent rumors about the US government secretly selling off its Bitcoin reserves are completely false. New data proves otherwise.
The Government’s Bitcoin Hoard Remains Untouched
Blockchain analytics firm Arkham Intelligence confirmed that the US government still holds at least 198,000 Bitcoin (BTC), worth around $23.5 billion! This Bitcoin is spread across various agencies like the US Marshals Service, FBI, DOJ, DEA, and US Attorney’s Offices. Importantly, none of these Bitcoins have been moved in the past four months.
Where Did All This Bitcoin Come From?
Most of the government’s Bitcoin comes from two massive seizures:
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The Bitfinex Hack (2016): The arrest of Ilya Lichtenstein and Heather Morgan led to the recovery of a whopping 94,000 BTC (later increased to 114,599 BTC), worth about $13.65 billion. This Bitcoin was stolen from Bitfinex customers and might eventually be returned to them.
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Silk Road Exploitation (2020): Authorities seized 69,369 BTC (around $8.26 billion) from an individual who exploited a vulnerability in the Silk Road system years after it was shut down.
The government also has smaller amounts of Bitcoin from other criminal investigations and legal settlements.
Bitcoin Price: A Bit of a Standoff
Bitcoin’s price is currently stuck between $115,724 and $122,077. It’s been moving sideways after a big price jump earlier in July. While the overall trend is still positive, the lack of trading volume suggests investors are unsure what to do next. A break above $122,077 could send the price higher, while falling below $115,724 might cause a bigger drop.