![Data shows US government often sells at the local lows in the market](https://cryptoslate.com/wp-content/themes/cryptoslate-2020/imgresize/timthumb.php?src=https://cryptoslate.com/wp-content/uploads/2024/04/us-government-bitcoin-balance.jpg&w=70&h=37&q=75)
Quick Take
On Apr. 2, CryptoSlate reported that the US government sold 1,999 Bitcoin (BTC), valued at approximately $130 million, from a wallet associated with Silk Road to the digital assets exchange Coinbase. As per Arkham Intelligence firm, only 1,999.999 BTC were spent in the transaction, leaving the remaining 29,799.99012413 BTC unspent.
![US Government Transaction Explorer: (Source: Arkham Intelligence)](https://cryptoslate.com/wp-content/uploads/2024/04/spent.png)
The recent transaction reduced the US government’s seized BTC balance from 210,800 BTC to 208,800 BTC, as per CryptoQuant data. Consequently, the government now holds less than 1% of the total BTC supply.
![US Government Seized Bitcoin Balance and Balance Change: (Source: CryptoQuant)](https://cryptoslate.com/wp-content/uploads/2024/04/US-Government-Seized-Bitcoin-Balance-and-Balance-Change-1024x645.jpg)
This sale aligns with the government’s ongoing strategy of gradually offloading seized BTC holdings, according to CryptoQuant data. Notably, in March 2023, approximately 10,000 BTC were sold at a time when BTC was trading at around $21,500. This sale nearly coincided with a local price bottom, which dipped to around $20,000 during the SVB collapse. Another significant sale of approximately 8,200 BTC occurred on July 12, 2023, with Bitcoin trading at around $30,000.
This development bears similarities to when the UK government sold over half of its gold reserves in 1999 at approximately $270 per ounce. This move coincided with a cyclical bottom before gold embarked on a multi-year bull run.