Crypto investors are spreading a rumor that suggests the US government has quietly liquidated nearly 170,000 BTC. This leaves a small fraction of their assumed holdings. The speculation began after In response to a FOIA Request, the US Marshals Service revealed it only holds 28,988 BTC worth approximately $3.4 billion.
This disclosure was interpreted by many crypto-investors as meaning that the total Bitcoin reserve of the US federal government had decreased from its long-assumed value of around 200,000 BTC. It was a claim that gained traction on social media platforms X and X.com, with some of the most prominent public figures reacting to the apparent strategic sale by the US Government.
FOIA Request Misinterpreted
It appears that confusion has arisen due to the US Government selling off its majority Bitcoin holdings. from misinterpretations of the Specific holdings of US Marshals Service and those of the whole federal government. FOIA request which sparked debate was submitted by The Marshals are accurately represented by the journalist L0laL33tz. This only includes the Bitcoin in the possession of this particular agency.
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On-chain data from Arkham Intelligence is a blockchain analysis firm that provides an entirely different view. Arkham Intelligence estimates that the US Government as a Whole still has approximately 198,000 BTC worth more than $23,46 billion at current Bitcoin prices. The coins are spread across federal agencies. are not limited to Marshals holdings. The misrepresentation spread quickly.
US Senator Cynthia Lummis who has been a vocal advocate of Bitcoin responded. rumor, saying, “I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves, leaving just ~29,000 coins. If true, this is a total strategic blunder and sets the United States back years in the bitcoin race.”
What Would Happen If The US Sold Quietly 170,000 BTC?
If the US government did indeed sell 170,000 BTC secretly, the impact on the wider crypto market could be massive. Such a sale would trigger massive selling pressure, causing a steep drop in Bitcoin prices. It would undermine investor confidence and cause a cascade of sales across the entire crypto-market. This would cause not only technical problems in the price structure, but also cancel out the possibility of Crypto is a strategic asset for governments all over the world.
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A dump of this magnitude would also be in direct contradiction to the direction federal policy set out earlier this year. Donald Trump was elected president in March. signed an executive order Instructing federal agencies to send their Bitcoins and digital assets to the US Treasury. This order created a Bitcoin Reserve, which recognized the currency as a nation asset. The US’s policy is a reflection of this. would quietly sell off It seems unlikely that the Trump administration will be able to hold the bulk of Bitcoins.
Bitcoin currently trades at $118.360.
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Source: www.newsbtc.com
