The US government moved 2,874.9 Bitcoin worth $183.28 million to Coinbase Prime on July 13, according to Galaxy Research blockchain data. A separate dormant government-linked address also deposited 140.2 Bitcoin to the exchange. The transfers have raised concerns about potential government liquidation of seized crypto assets.
The US government transferred 2,874.9 Bitcoin worth $183.28 million to Coinbase Prime on July 13, blockchain data from Galaxy Research shows.
"Government-linked wallet activity on exchanges is historically interpreted as a preparatory step for liquidation," a Galaxy Research analyst said.
The transfer coincided with a separate deposit of 140.2 Bitcoin worth $8.79 million from a dormant US government-linked address that had been inactive for four years, Lookonchain data shows. Coinbase Prime offers trading, custody and financing services for institutional investors, meaning the transfer may serve purposes beyond an outright sale.
The combined $192 million in potential selling pressure introduces near-term downside risk for Bitcoin, with traders monitoring government-controlled wallets for further exchange deposits that could signal a broader liquidation plan.
The US government holds one of the largest sovereign Bitcoin stockpiles, primarily from seizures tied to the Silk Road marketplace, the Bitfinex hack and the Bitconnect scheme. Any coordinated liquidation of those holdings could absorb weeks of spot market buying pressure.
Bitcoin's price reaction will depend on whether the Coinbase Prime deposit leads to an actual sale or represents a routine custody rebalancing. The distinction matters for traders positioning ahead of potential supply overhang.
This article is for informational purposes only and does not constitute investment advice.
