The U.S. Government Moved $1.5 Billion in Seized Crypto in Two Days. Will It Sell?

Blockchain trackers flagged two massive government Bitcoin transfers within 48 hours, and traders are now watching every on-chain move for clues about whether billions in seized crypto could soon flood the market.

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U.S. government wallets transferred about $1.5 billion in seized cryptocurrency on October 7 and 8, 2026, mainly Bitcoin (CRYPTO: BTC), according to blockchain analytics firm Arkham. Traders quickly took notice since a government sale of this magnitude could significantly impact the market.

Despite the large movement, Bitcoin’s value rose about 1% over the past 24 hours, trading around $83,200 as of October 10. This is still roughly 34% below its all-time high of $126,080. So, is the U.S. government gearing up to sell its Bitcoin?

The U.S. Government Moved $1.5 Billion of Seized Bitcoin in Two Transfers

The first transfer occurred on October 7, when wallets associated with the Bitfinex hacker and Alameda Research sent about $470 million in Bitcoin, wrapped Bitcoin, and the stablecoin USDT to addresses likely linked to Coinbase Prime, Coinbase’s institutional arm that handles trading and asset custody.