US Crypto Sell-Off: Fact or Fiction? 🤑

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Some Key Things to Keep in Mind (Before You Panic):

  • There’s been a bit of a kerfuffle about the US government allegedly selling off a whopping 85% of its Bitcoin holdings.
  • But, as it turns out, the US government holds its crypto assets in different categories – seized and forfeited assets.
  • The 200,000 Bitcoin held by the US government is still intact, and the crypto reserve is on track (phew!).

Reports have surfaced, claiming that the United States government has sold the majority of its Bitcoin holdings. Cue the panic across the crypto industry! 😱

But, how much truth is there to these claims? Let’s dig in, shall we? 🤔

The Shocking Claim (That Wasn’t So Shocking After All)

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. 🏎️

— Senator Cynthia Lummis (@SenLummis)

But, before jumping to conclusions, it’s essential to understand the difference between seized and forfeited assets. 🤓

Seized assets are cryptocurrencies taken by law enforcement during investigations or legal proceedings. These funds are not considered government property unless they are officially forfeited by court order. 🚫

Forfeited assets, on the other hand, are legally declared to be property of the U.S. government. These are the coins that the USMS is responsible for managing and selling. 💰

So, when the USMS says it holds 28,988 BTC, it is referring only to forfeited Bitcoin, or coins that can legally be auctioned or sold by the federal government. 📈

In essence, the remaining ~170,000 BTC that people thought had vanished are still there. Only that they are “seized” assets, which haven’t yet gone through the legal process that would turn them into government property. 🤑

What About the 200,000 Bitcoin? (Spoiler Alert: It’s Still Intact)

Blockchain analytics firm Arkham Intelligence shows that the U.S. still controls around 198,000 BTC, which is currently worth more than $23 billion. 💸

This aligns well with earlier reports that the US government had accumulated a massive Bitcoin stockpile over years of law enforcement seizures. Much of it comes from high-profile cases like the Silk Road takedown and the Bitfinex hack. 🚨

For example, around 94,000 BTC were seized in connection to the Bitfinex breach, and a huge chunk of these holdings are still under legal review. 🤔

Put simply, while the government has access to these assets, it does not legally own them. At least not yet. 🤑

What Sparked the Confusion? (A Misinterpretation, Of Course)

Nope)

The answer to this is no. As of now, there’s no blockchain evidence that shows that President Biden or any federal agency has secretly sold 85% of the government’s Bitcoin stash. 🤑

Arkham Intelligence and other blockchain tracking platforms would have detected such a massive liquidation, and the strategic reserve plan is still fully in place. 📈

So, there you have it. The US government’s Bitcoin holdings are still intact, and the crypto reserve is on track. Panic averted! 😌

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2025-07-17 19:21