The United States government has once again stirred the crypto market after transferring seized Bitcoin to Coinbase Prime. The funds are linked to assets confiscated from Ilya Lichtenstein, one of the individuals behind the infamous Bitfinex hack. The move has reignited speculation about whether authorities are preparing to liquidate the recovered BTC.
U.S. Government Moves Recovered Bitcoin
Blockchain intelligence firm Arkham Intelligence has revealed that the U.S. government may be preparing to sell Bitcoin. In a recent X post, Arkham disclosed that authorities moved over $606,470 worth of BTC to Coinbase Prime, a platform often used for institutional transactions.
According to the firm, the transfer occurred in two swift transactions. The government initially deposited 0.197 BTC, valued at $14,555, before almost immediately sending roughly 8 BTC, valued at about $591,000, completing the full movement. Arkham further clarified that the assets originate from funds seized from Ilya Lichtenstein.
For context, Lichtenstein orchestrated the August 2016 Bitfinex hack, siphoning approximately 120,000 BTC valued at around $72 million at the time. Years later, in 2022, U.S. authorities recovered a significant portion of the stolen funds, then worth about $3.6 billion.
Despite the latest movement and potential sell-off concerns, the U.S. government still holds a substantial Bitcoin reserve exceeding 328,000 BTC, currently valued at over $24 billion, making it one of the largest known state holders of the asset.
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Bhutan Also Trims Bitcoin Holdings
Meanwhile, aside from the U.S. government, blockchain tracking data indicates that the Royal Government of Bhutan has also been actively reducing its Bitcoin exposure. According to Arkham Intelligence, Bhutan recently offloaded approximately $18.46 million worth of BTC.
Since the start of 2026, the intelligence firm reports that Bhutan has sold a total of $198 million in Bitcoin, signaling a consistent distribution trend. Despite these ongoing sales, the country still maintains a sizable reserve of 3,524 BTC, currently valued at about $263.91 million.
However, Arkham suggests that if the current liquidation pace continues, Bhutan could fully exhaust its Bitcoin holdings by September 2026. This projection has added another layer of concern for market watchers, as sovereign sell-offs introduce additional supply into the market.
Market Faces Slight Dip Despite Bullish Outlook
However, recent data from CoinMarketCap shows that the crypto market is experiencing a brief downtrend. The global crypto market cap has slipped by 0.1% over the past 24 hours, currently standing at $2.62 trillion.
Bitcoin has also recorded a minor pullback, declining by 0.4% over the same period, while still trading above $74,000. Despite this short-term dip, market sentiment remains cautiously optimistic.
A market expert has suggested that Bitcoin could still stage a near-term rally, provided it maintains support above $72,000. This level is increasingly viewed as a critical zone that could determine whether the current consolidation evolves into another upward move or a deeper correction.
Josiah Oluwadare
