The US government’s wallets unexpectedly transferred a quarter of a billion dollars worth of bitcoins to Coinbase exchange, raising concerns about a possible dump sale.
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Millions in Cryptocurrency on the Move
Government addresses, which were supposed to serve as a strategic reserve following a March 2025 order, sent a total of 3,940 BTC and 30,007 ETH to the institutional platform Coinbase Prime. The total value of the transferred coins reaches approximately $288 million. Most of these funds come from older confiscations, including the case of drug dealer Ryan Farace and cases connected to the defunct BTC-e exchange.
This move immediately sparked controversy, as White House crypto czar David Sacks had previously clearly stated that the state would not sell its crypto reserves. Premature sell-offs in the past have cost American taxpayers billions of dollars. The current transfer thus appears to directly contradict the government’s intention to hold confiscated digital coins as a long-term store of value.
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How the Market Is Reacting and What to Expect Next
While the transfer to the exchange itself sparked speculation, the bitcoin price did not panic and, after a brief dip, stabilized above the $65,000 threshold. On-chain analysts point out that merely depositing to Coinbase Prime does not automatically mean an immediate sale on the open market. Investors are closely monitoring the situation, but an immediate supply overhang has not yet materialized.
However, if Washington were to gradually liquidate its entire government treasury of 325,000 bitcoins, it would represent a huge test for the market. The coming days will reveal whether this was merely an administrative transfer within internal asset management, or the beginning of massive state pressure on cryptocurrency prices.
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