Arkham Shuts Down FUD: U.S. Government Bitcoin Dump Claims Debunked

Rumors of a U.S. government Bitcoin sell-off just got torched.

Arkham Intelligence—the blockchain sleuths who track everything from whale wallets to state-sponsored crypto moves—just dropped a truth bomb on market chatter about Uncle Sam liquidating BTC holdings. Their verdict? Pure fiction.

The Takeaway

No massive sell orders. No secret Treasury Department off-ramps. Just another case of crypto Twitter amplifying noise into 'narrative.'

Funny how these 'imminent dump' stories always surface when BTC tests resistance levels—almost like someone wants to spook retail into selling. (Wall Street’s algos thank you for the liquidity.)

Arkham’s rebuttal lands as Bitcoin flirts with $70K again. Coincidence? In crypto, there are no coincidences—just opportunists and the bags they’re trying to dump.

Key Takeaways

• Arkham Intelligence confirms the US holds 198,000 BTC, disproving rumors of an 85% government sell-off.
• These bitcoin reserves are distributed across multiple agencies and have not moved for four months.
• A forthcoming Trump administration report is expected to address digital asset policy and the potential for a federal bitcoin reserve.

Arkham clarifies US bitcoin holdings

Recent claims that the US government had liquidated 85% of its Bitcoin reserves have been contradicted by blockchain analytics firm Arkham Intelligence.

While reports had alarmed political and bitcoin circles, Arkham states the US still holds 198,000 BTC, valued at $24 billion as of July 2025.

Arkham articulated:

The US Government currently holds at least 198,000 BTC ($23.5B) across multiple addresses held by different government arms – none of this has moved for 4 months.

These holdings are distributed among several agencies, including the FBI, DOJ, DEA, and US Attorney’s Offices—not solely the US Marshal’s Service, as previous reports implied.

Earlier, Senator Cynthia Lummis voiced concerns over the rumored sell-off, stating,

I’m alarmed by reports that the US has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins. If true, this is a total strategic blunder and sets the United States back years in the bitcoin race.

Comparatively, the US government’s bitcoin stash outweighs those of the UK ($7 billion) and Bhutan ($1.3 billion).

The bitcoins in question, largely seized from criminal cases, have not been moved in the past four months, causing ongoing speculation about potential market impact if a sell-off occurs.

Trump administration report on digital assets

The clarification arrives as the TRUMP administration’s digital assets task force prepares to release its 180-day report on July 30.

The report is anticipated to address oversight, token classification, and the feasibility of a federal bitcoin reserve, possibly funded by already-seized assets rather than new taxpayer money.

Monica Jasuja of the Emerging Payments Association Asia said:

This isn’t necessarily about the US buying Bitcoin on the open market, but rather exploring the feasibility of establishing a federal crypto reserve, potentially drawing from seized digital assets already in government custody.