- The U.S. government moved $10.23 million worth of BTC and ETH on Friday, sparking debate over potential liquidation.
- The transfer aligns with a key directive in President Trump’s executive order to create the Strategic Bitcoin Reserve on March 18.
- Despite historical sell-offs linked to government transactions, Bitcoin remains stable at $86,600, confirming a neutral market sentiment.
The U.S. government’s recent $10.23 million Bitcoin and Ethereum transfer has sparked speculation about potential liquidation or strategic accumulation under new policies.
US government’s transfers of 97 BTC and 884 ETH sparks market speculations
Citing Arkham Intelligence data, crypto analytics platform Lookonchain has reported a series of transactions linked to the United States government.
According to the post on Friday, the US government transferred 97 Bitcoin (BTC) valued at $8.46 million and 884 Ethereum (ETH) worth $1.77 million on March 28.
US Government transfers $10.23 million on March 27, 2025 | Source: Arkham Intelligence
The transaction, executed at 5:51 PM EST, has reignited discussions about the Trump administration’s strategy for managing the US crypto holdings, particularly following a recent executive orders.
U.S. Government’s Crypto holdings and market influence
Historically, large government-led transfers have exerted downward pressure on crypto prices.
In December 2024, a $1.9 billion Bitcoin movement to Coinbase Prime triggered a 5% decline over three days, as reported by OneSafe. Similar transactions in
April, June, and August 2024 also caused short-term selloffs, though Bitcoin has consistently rebounded.
Currently, the U.S. government holds 198,012 BTC, valued at $17.22 billion, and 59,965 ETH, worth $119.7 million, making it one of the largest institutional holders of cryptocurrency.
US Government’s Crypto Holdings as of March 27 | Source: Arkham
Much of these reserves are from assets seized in criminal investigations, including the notorious 2016 Bitfinex hack, in which authorities recovered 94,000 BTC—now valued at over $8 billion.
Bitcoin price action (BTCUSD) after US Government’s transfers on March 27 2025 | Source: CoinmarketCap
Bitcoin’s market price on March 28 hovered around $87,200, while Ethereum traded near $2,000, showing that market sentiment remained neutral after the transfer.
Sell-off unlikely due to Trump’s recent executive orders
Historical trends show that US government Bitcoin transactions often introduce short-term volatility, as market participants brace up for potential sell-offs.
However, Bitcoin price continues to hold up around the $86,600 mark at press time on Friday, with recent news events suggesting that a sell-off is unlikely.
Notably on March 18, Donald Trump issued an executive order establishing a Strategic Bitcoin Reserve.
A critical directive in the order mandates federal agencies to report their cryptocurrency holdings within 30 days to the Secretary of the Treasury.
Hence, this move suggests that the $10.3 million BTC and ETH transactions could be part of a broader effort to consolidate crypto holdings in line with the administration’s latest directives, rather than another major sell-off.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH, and XRP decline as President Trump’s team considers “broader and higher tariffs”
Bitcoin continues its decline, trading below $82,000 on Monday after falling 4.29% the previous week. Ethereum and Ripple followed BTC’s footsteps and declined by 9.88% and 12.40%, respectively.
XRP Price Forecast: Weak demand and rising supply could trigger a downtrend
Ripple's XRP is down 7% on Friday following bearish pressure from macroeconomic factors, including United States (US) President Donald Trump's tariff threats and rising US inflation.
Crypto Today: XRP, SOL and ETH prices tumble as South Carolina moves to buy up to 1 million BTC
Bitcoin price tumbled below the $85,000 support on Friday, plunging as low as $84,200 at press time. The losses sparked over $449 million in liquidations across the crypto derivatives markets.
Hackers accelerate ETH decline following $27 million dump, bearish macroeconomic factors
Ethereum (ETH) declined below $2,000 on Friday following a series of hacks traced to accounts of crypto exchange Coinbase users, which caused a loss of $36 million.
Bitcoin: BTC remains calm before a storm
Bitcoin's price has been consolidating between $85,000 and $88,000 this week. A K33 report explains how the markets are relatively calm and shaping up for volatility as traders absorb the tariff announcements. PlanB’s S2F model shows that Bitcoin looks extremely undervalued compared to Gold and the housing market.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.