U.S. government-linked wallets moved roughly 17,795 BTC over three days, on-chain trackers recorded, with the combined value of the transfers near $1.5 billion. The activity drew attention as Bitcoin's price fell toward the low-$81,000 region. The transactions included coins connected with the Bitfinex recovery and several other federal seizure cases, and part of the latest supply reached Coinbase Prime, though no government agency has confirmed a sale.

At a glance:

• The U.S. government moved 9,261 BTC worth about $770 million to Coinbase Prime.
• Government-linked wallets transferred more than 12,260 BTC, valued at roughly $1.1 billion.
• Bitcoin's price fell to about $81,812, with traders watching support near the $81,500-$82,000 range.

Government-Linked Wallets Move 12,267 BTC

Government-linked wallets have moved 12,267 BTC in recent transactions, according to Arkham data. The latest activity follows a separate movement of 833.6 BTC on October 7, when the U.S. government also transferred 40,285 BNB connected to seized assets. Because these holdings originate from individual enforcement cases rather than open-market purchases, they surface on-chain in batches tied to specific recoveries and forfeitures.

Galaxy Research tracked 9,261 BTC moving to Coinbase Prime across two days. Around half of that Bitcoin came from assets recovered after the 2016 Bitfinex hack, while another 2,456 BTC came from wallets that had not previously carried a government attribution label.

The unidentified Bitcoin may relate to newer law enforcement seizures. However, no statement from the Department of Justice or the U.S. Marshals Service confirmed a new seizure involving those coins at the time of the report.

Coinbase Prime Transfer Does Not Confirm a Sale

The movement of Bitcoin to Coinbase Prime has attracted attention because the platform provides institutional custody and trading services. Still, a deposit does not establish that the government sold the transferred assets.

The U.S. Marshals Service selected Coinbase Prime in 2024 to provide custody and advanced trading services for large-cap digital assets held through the federal asset-forfeiture system. Government-held coins can therefore enter Coinbase Prime for custody, administration, settlement, or other purposes without immediately reaching the open market. For readers tracking potential supply, the distinction matters: a custody deposit and an open-market sale are separate steps and only the latter would put coins into trading flow.

The recent activity also includes BTC tied to the Bitfinex recovery. Federal authorities seized more than 94,000 BTC in 2022 after recovering access to a wallet containing part of the stolen funds. A federal court later ordered 94,643 BTC and related forked assets returned to Bitfinex as part of restitution proceedings, meaning the disposition of those specific coins follows the court's order rather than federal discretion.

Galaxy estimates that government-linked addresses hold about 319,086 BTC across seizure-related wallets. The estimate includes assets associated with the Prince Group and the LuBian case, as well as Bitcoin recovered from the Bitfinex hack. The latest movements do not establish that the U.S. government plans to sell its BTC reserve, and at that scale even routine custody operations are large enough to register across on-chain dashboards and social media alike.

Bitcoin Price Tests Key Support at $81,500-$82,000

Bitcoin's price remains under pressure after failing to sustain its recent recovery, and the key area for traders now sits between $81,500 and $82,000. A sustained move below that zone could leave Bitcoin vulnerable to deeper losses.

The large transfers circulated widely on social media, including a post from trader Scott Melker on X.

Market trader Ted Pillows expects Bitcoin to reach $78,000 during October. His forecast also identifies $75,000 as a possible downside level if the price loses the $81,500 area before a stronger recovery develops.

With no sale confirmed, the clearest next markers for observers would be further on-chain movement out of Coinbase Prime or an official statement from federal agencies clarifying the status of the newly attributed wallets.

Bitcoin traded around $81,812 in the latest market data, down about 1.97% over 24 hours. The market also traded near $80,500 during the session, keeping the lower levels in focus.

This article is for informational purposes only and does not constitute financial or investment advice. Blockchain transfers do not confirm asset sales, and Bitcoin prices and technical levels may change as market conditions evolve.