On March 28, 2025, the U.S. government transferred 884 Ethereum (ETH) valued at $1.77 million and 97 Bitcoin (BTC) worth about $8.46 million, raising concerns about a possible sell-off or deliberate accumulation of digital assets.

According to the crypto tracking platform Lookonchain on X,the blockchain analytics company Arkham Intelligence discovered the transaction, which took place at 5:51 PM EST and involved money moving from government-owned wallets connected to assets that had been seized. There are several concerns among crypto enthusiasts and analysts about whether the transfer is in line with new federal policies given that it was made just days after former President Donald Trump issued an executive order on March 18 creating a Strategic Bitcoin Reserve.

Arkham Intelligence taking to their X account noted:

“The US Government just moved $8.46M BTC from Sae-Heng Confiscated Funds.$10 of BTC was sent to: bc1qs0qhmlzh2wvs0n70vn7s6jj37zvek2e7t73kfg…The remaining $8.46M moved to a change wallet: bc1q7qf075up5nkd6hejgkmr9ms0fal97w35asrs55”

Market Reaction and Crypto Holdings

The price of bitcoin has previously experienced brief declines due to significant US government transactions. For example, the price of Bitcoin dropped 5% over the three days in December 2024 when the government transferred $1.9 billion worth of Bitcoin to Coinbase Prime. Similar price reductions occurred in 2024 during the months of April, June, and August when the government made significant transfers.

Coinbase data, however, indicates that this most recent transfer did not result in a notable change in price. Bitcoin and Ethereum both hovered around $87,200 and $2,000, respectively. Ethereum saw a downtrend and went to $1,995 (-0.25%) and Bitcoin briefly dropped to $87,150 (-0.097%) almost immediately after the transfer was announced by Arkham, but both quickly recovered. However, at the time of writing, Bitcoin is trading at approximately $85,025.02, and ETH is trading at approximately $1,906.90, indicating a notable decline in the price movement. 

U.S. Government’s Crypto Holdings and Strategic Reserve Plan

The U.S. government is one of the largest holders of cryptocurrency despite frequent transfers of the assets. The U.S. government possesses 198,012 Bitcoin, with an estimated worth of $17.22 billion, and 59,965 Ethereum, which is worth $119.7 million. However, Many of these assets are rumored to have come from illegal activities, like the Bitfinex hack in 2016. 

Many believe that President Donald Trump’s order from March 18, which established a Strategic Bitcoin Reserve, is related to the recent transfer. According to this order, federal agencies have 30 days to disclose their cryptocurrency holdings. As a result, the $10.23 million transfer may be a part of a scheme to transfer or organize cryptocurrency funds rather than sell them.

Instead of being an indication of a significant sell-off, these transfers might be a component of a larger strategy to manage cryptocurrency holdings given President Trump’s Strategic Bitcoin Reserve policy. Traders will be keeping a close eye out for any additional government actions that might have an impact on the market as blockchain analysts continue to track future movements.

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