U.S. Government Moves Millions in BTC, ETH and AVAX Amid Reserve Strategy
28.03.2025 12:17
According to Arkham Intelligence data, the U.S. government has executed several high-value cryptocurrency transactions. The government moved $8 million worth of Bitcoin (BTC) to a change wallet and transferred $1.77 million worth of Ethereum (ETH) to a new address. Additionally, earlier this month, an address linked to the U.S. government transacted Avalanche (AVAX) tokens. These movements follow past significant government activities, including a major Bitcoin sale in March 2023 and other large-scale liquidations linked to Silk Road-related seizures. The government has also established a strategic Bitcoin reserve and maintains a separate stockpile of unspecified altcoins. Bloomberg recently estimated a 30% chance of the government purchasing Bitcoin in 2025, indicating potential future market engagement. The reported transactions suggest a continuing strategy by the U.S. government to manage and reposition its cryptocurrency holdings as part of a broader reserve strategy.
Bitcoin's price may see moderate volatility in the short term due to these government moves. The $8M transfer and historical precedent of large-scale sales indicate active reserve repositioning. However, the potential 30% chance of future government purchases, combined with the institution’s credibility, may bolster long-term bullish sentiment.
The $1.77M movement of Ethereum suggests a similar, though less pronounced, market impact as seen with Bitcoin. Short-term fluctuations might occur from portfolio adjustments, but given ETH’s robust market profile and the strategic nature of the transfer, the overall effect is expected to be neutral to slightly positive over the mid to long term.
Avalanche’s movement, though smaller in scale, indicates the government's diversification within its crypto reserves. This action could lead to brief volatility due to market reallocation, but historically similar moves have had minimal long-term impact. The standard nature of this portfolio adjustment points to a largely neutral effect on AVAX’s price.
Sources
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