US Government Moves Millions in Bitcoin and Ethereum Amid Strategic Crypto Activity

The U.S. government has moved over $8 million worth of Bitcoin, according to blockchain analytics platform Arkham Intelligence. Most of the BTC was transferred to a change wallet, with Bitcoin currently trading at $87,326, based on CoinGecko data.

Additionally, $1.77 million worth of Ethereum (ETH) was sent to a new address. Earlier this month, a government-linked wallet also moved Avalanche (AVAX) tokens, signaling continued activity across multiple cryptocurrencies.

The latest moves have sparked speculation about potential future sales or strategic repositioning of seized digital assets. Court documents reveal the last publicly known government Bitcoin sale occurred in March 2023, involving $215.5 million in assets confiscated from Silk Road hacker James Zhong. However, Arkham estimates an additional $2.24 billion in BTC related to Zhong was discreetly sold between June 2023 and December 2024.

In a notable shift in policy, the U.S. government has established a strategic reserve for forfeited Bitcoin and a separate holding for altcoins. This move reflects a broader effort to manage digital assets more actively and strategically rather than liquidating them immediately.

Bloomberg recently reported a 30% chance that the government could begin acquiring Bitcoin instead of solely selling it, highlighting growing institutional interest and changing perspectives on crypto as a long-term asset.

The government’s movements are closely watched by investors and analysts alike, as they could impact market sentiment and signal broader regulatory or financial strategies. As digital assets continue to gain mainstream traction, the role of state actors in crypto markets is becoming increasingly significant.