According to the source, the U.S. government now holds $20.56B in crypto, with $20.42B concentrated in BTC (BTC), implying a sizable potential supply overhang if wallets move funds to venues linked to liquidation. On-chain analytics label U.S. government wallets and allow real-time tracking of flows, enabling traders to set alerts for transfers to exchanges or custodians as short-term risk signals, according to Arkham Intelligence’s public government-entity dashboards. The U.S. Department of Justice detailed its disposition approach in United States v. James Zhong, including a completed sale of 9,861 BTC in March 2023 and a plan to sell 41,490 BTC in tranches that year, illustrating how official liquidations can occur in batches rather than all at once, according to DOJ court filings. Historically, seized BTC has also been sold via auctions to mitigate market impact, as documented by the U.S. Marshals Service’s 2014–2015 Bitcoin auctions. For trading, monitor labeled U.S. government BTC addresses for large outbound transfers, watch exchange inflows and derivatives basis/funding for stress, and use Arkham Intelligence alerts to confirm flows before positioning, according to Arkham Intelligence and DOJ/USMS historical practices.

According to the source, the U.S. government holds 316,760 BTC (~$35.9B) based on on-chain attribution, making it one of the largest known Bitcoin holders (source: CryptoQuant). Traders should treat sovereign wallets as potential supply and monitor U.S. government–labeled wallet movements and official sale announcements for timing risk (sources: Arkham Intelligence; U.S. Marshals Service). Historical U.S. government Bitcoin disposals were executed via auctions or court-directed sales rather than direct exchange selling, informing execution risk and liquidity planning (sources: U.S. Marshals Service; U.S. Department of Justice).

According to the source, the U.S. government’s labeled on-chain wallets are heavily weighted toward BTC relative to ETH, as indicated by Arkham Intelligence’s public entity tracking of U.S. Government addresses (source: Arkham Intelligence). U.S. Department of Justice announcements and U.S. Marshals Service records document repeated BTC seizures and subsequent disposals via auctions or transfers, creating identifiable supply events that traders monitor for market impact (source: U.S. Department of Justice; U.S. Marshals Service). For trading, tracking government wallet movements and official seizure or disposal notices helps gauge potential BTC supply overhang risk, while ETH appears less exposed based on materially smaller government-held ETH balances observed on-chain at present (source: Arkham Intelligence; U.S. Department of Justice; U.S. Marshals Service).

According to Eleanor Terrett on Twitter, Senator Lummis stated at The Bitcoin Conference that she believes the US government currently holds around 200,000 Bitcoins. However, she clarified that the exact figure is uncertain due to the information being classified after a mandated White House audit (source: @EleanorTerrett, May 27, 2025). For crypto traders, confirmation that the US government holds such a significant Bitcoin reserve could impact market supply, institutional sentiment, and future liquidation risks. The classified status adds uncertainty regarding potential government moves, which remains a key risk factor for Bitcoin price volatility.