Contrary to recent rumors, blockchain analytics firm Arkham Intelligence confirms the US government still holds approximately 198,000 BTC – worth about $24 billion at current prices. This clarification comes after widespread speculation about a potential 85% sell-off of government Bitcoin reserves.
How the Rumors Started
The confusion began when a Freedom of Information Act (FOIA) request revealed the US Marshals Service held only about 29,000 BTC. Many interpreted this as evidence of a massive government sell-off, but Arkham’s report provides crucial context:
- The FOIA data didn’t include holdings from other agencies
- FBI, DOJ, DEA, and US Attorney’s Offices all hold significant amounts
- Total government holdings remain among the world’s largest
Putting the $24B Holding in Perspective
The US government’s Bitcoin position:
- Largest national holder globally (UK has $7B, Bhutan $1.3B)
- Represents 0.065% of US national debt ($37 trillion)
- While small relative to debt, shows institutional recognition of Bitcoin
Why This Matters for Crypto Markets
Though the sell-off rumors proved false, they raised important questions:
- What happens if the US actually liquidates these holdings?
- Could such a move destabilize markets?
- Does this signal long-term government acceptance of crypto?
Arkham’s clarification provides much-needed transparency, but the episode highlights how government Bitcoin moves could significantly impact crypto markets in the future.