U.S. Government’s $10.23 Million Bitcoin and Ethereum Transfer Triggers Market Speculation

A recent transfer of 97 Bitcoin (BTC) and 884 Ethereum (ETH) by the U.S. government, totaling $10.23 million, has sparked fresh speculation in the cryptocurrency market.

A recent transfer of 97 Bitcoin (BTC) and 884 Ethereum (ETH), totaling $10.23 million, by the U.S. government on March 28 has sparked fresh speculation in the cryptocurrency market.

As crypto analytics platform Lookonchain, which cited data from Arkham Intelligence, points out, the transaction, executed at 5:51 PM EST, comes amid ongoing debate over the government's crypto management strategy, especially in light of the latest executive orders.

The government, known for holding a sizable portion of the cryptocurrency market, typically has a noticeable impact on market dynamics with its actions. Notably, large-scale transfers by government entities in the past have often exerted downward pressure on cryptocurrency prices.

For instance, the movement of $1.9 billion worth of Bitcoin to Coinbase Prime in December 2024 led to a 5% price drop over three days. Similarly, transactions in April, June, and August 2024 contributed to short-term selloffs, though Bitcoin consistently rebounded after such events.

The March 28 transfer occurred as Bitcoin's market price was around $87,200, and Ethereum traded near $2,000. Despite the transaction's magnitude, market sentiment remained relatively neutral, with no immediate significant price drop or rally following the transfer.

The timing of these transfers, combined with ongoing policy developments under the current administration, has led many to speculate about whether the U.S. government is planning a strategic accumulation or is simply liquidating assets in response to new regulations. Ultimately, the government's actions continue to influence market dynamics, making it a key player in the broader crypto landscape.