- US government-linked wallets moved over $103M in Bitcoin and BNB.
- The transfers do not confirm that the seized crypto is being sold.
- Further exchange transfers and BTC price could signal rising selling pressure.
The US government has reportedly moved more than $100 million worth of Bitcoin and BNB, sparking speculation about a potential sell-off. However, the moves do not necessarily mean that the government is about to sell the assets.
Now, the question is where these cryptocurrencies will go next. If they remain in the government-controlled wallets, the market impact could be limited. But if the coins are moved to exchanges or liquidation channels, it could add fresh selling pressure to BTC, BNB, as well as other major cryptocurrencies.
US Moves Millions in Bitcoin, BNB
According to the latest reports, crypto wallets linked to the US government have moved about $103 million in cryptocurrencies on October 7, 2026. The transfers include 833.6 BTC worth $71.56 million and 40,285 BNB worth $31.63 million. As Lookonchain revealed, BTC was sent to Coinbase Prime, while BNB was transferred through several wallets before reaching an unlabelled address.
Notably, these moved assets are apparently linked to the previously seized cryptocurrencies. In detail, about 568.7 BTC from the total Bitcoin moved is connected to the Potapenko/Turogin case. The remaining 264.9 BTC is likely to be linked to the Bitfinex case. At the same time, the transferred BNB came from assets confiscated in the Alameda Research case.
Is Selling Imminent?
Despite prevailing speculations about possible selling, the government’s crypto transfer does not confirm such a move. The government usually moves seized crypto from one wallet to another for several reasons. It could be for custody, management, or other administrative reasons.
Here, Bitcoin is moved to Coinbase Prime. The wallet can provide access to institutional trading and custody. But simply transferring BTC to a Coinbase Prime wallet doesn’t necessarily mean the government is preparing to sell it.
The BNB transfer also does not clearly indicate a sale. The coins were reportedly moved between wallets rather than directly into a clearly identified exchange address. This could mean that the government was simply reorganizing or transferring custody of the assets.
Will Bitcoin and BNB Face Selling Pressure?
If the US government is preparing to sell the seized Bitcoin and BNB, the coin could face significant selling pressure. When more than $100 million worth of crypto enters the crypto market, supply surges and traders may take a cautious approach. This could impact crypto prices in the short term.
However, the impact will be based on the size and timing of the sale. If the government decides to sell these tokens gradually via institutional channels, the market could absorb the supply without making a major impact on prices. On the contrary, if a large batch of coins enter the market altogether, it could increase fear among traders and lead to short-term market corrections.
What Bitcoin Support and Resistance Levels Should Traders Watch?
The support and resistance levels of Bitcoin need much attention if there are increasing signals of a potential selloff. For BTC, the $83,000–$84,000 area is important as a support level. A break below this level could signal that sellers are gaining more control.
On the other side, Bitcoin’s critical resistance is marked at around $86,200–$86,700. A move above this zone could suggest that buyers are accumulating the additional supply, with the latest government move having a limited impact on market sentiment.
Could These Transfers Trigger a Broader Crypto Market Risk-Off Move?
It is worth noting that the government’s latest move could create a short-term caution among traders. But it may not trigger a broader risk-off sentiment. Although the $103 million in Bitcoin and BNB is a huge amount, it becomes relatively small compared with the overall crypto market. Thus, traders could absorb the additional supply if there is enough buying pressure.
But the real risk comes when these transfers are followed by liquidations or another large batch of seized crypto moving toward exchanges. If such moves follow, it could increase concerns about rising supply. It could also push some traders to reduce their positions, further escalating the selling pressure.
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Importantly, the main thing traders need to watch next is the coins’ potential movement. As the current transfer is not enough to confirm a sale, traders need to see where these Bitcoin and BNB are moved next. If the BTC is moved from Coinbase Prime to a known exchange deposit or trading wallets, it could be considered a key signal. If the coins are moved further and reach a market-facing address, traders could conclude that a sale is most likely to happen.
In addition, traders should also watch if the government is moving large portions of seized assets again. If more assets are moved, it could add further pressure to the broader crypto market. Besides these moves, traders should also watch price movements to know how crypto reacts to the US government’s actions.
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