US Government Moves $1 Billion in Seized Bitcoin as Spot ETF Outflows Weigh on BTC
U.S. government wallets shifted 12,267 BTC from a Bitfinex seizure wallet, while spot Bitcoin ETFs lost $244 million in a single session. Here is what the data confirms and what it does not.
Government Wallets Move 12,267 BTC
According to blockchain intelligence firm Arkham, wallets linked to the U.S. government moved 12,267 BTC, worth about $1.01 billion, on Thursday. The coins left a wallet that holds funds seized after the 2016 Bitfinex hack and went to new, unlabeled addresses.
The transfer came a day after roughly $383 million in crypto was deposited to Coinbase Prime. That platform also offers custody services, so a deposit there does not automatically signal a sale.
Why This Is Not a Confirmed Sale
Analysts stress that no exchange deposit was recorded in the latest transfer. That pattern is more consistent with internal wallet reshuffling than with liquidation. A March 2025 executive order directs forfeited bitcoin into a Strategic Bitcoin Reserve and states that it should not be sold. Arkham data shows the government still holds around $25.5 billion in digital assets.
Still, no federal agency has publicly explained the move. Until the destination or purpose is disclosed, the blockchain proves only that the coins changed addresses.
Spot Bitcoin ETFs Extend Their Outflows
The second story is about demand. According to Farside Investors, U.S. spot Bitcoin ETFs recorded $244.1 million in net outflows on Thursday. That followed $484.9 million in withdrawals on Wednesday, the largest daily outflow since late June.
Ether funds fared no better. They posted $72.5 million in net outflows on Thursday, extending their losing streak to eight consecutive sessions. Since September 29, those funds have shed about $641.3 million. For October so far, Bitcoin ETFs show $407.4 million in net outflows and Ether ETFs $578.9 million, a combined total of roughly $986 million.
Price Action Around $82,000
Bitcoin dipped as low as $80,427 on Thursday, according to CoinGecko, before recovering to trade near $82,500. Hundreds of millions of dollars in leveraged positions were liquidated during the sell-off, which added to the pressure. Rising oil prices and higher Treasury yields also weighed on risk assets.
Traders are watching the $82,000 area as near-term support. On the upside, the $87,000 zone remains a key resistance level.
What It Means for U.S. Investors
The two stories feed into each other. Large movements of government-held coins can raise concerns about future supply, even without a sale. At the same time, falling ETF demand removes a steady source of buying. If the coins stay in custody and fund flows stabilize, the market may calm. A confirmed sale or another large outflow day would likely keep volatility elevated.
