At the current Bitcoin price of $120,000, this amounts to roughly $3.4 billion. This has reignited debates about a massive Bitcoin liquidation under the Biden administration. However, on-chain analysis firm Arkham Intelligence reports no data supporting a large-scale sale. 

It was clarified that most of the 200,000 BTC are only seized assets not yet legally transferred to the government. Technically, the ownership of these BTC does not belong to the US government. 

Which Bitcoin Does the US Government Actually Own? 

According to FOIA documents from the US Marshals Service under the Department of Justice, only 28,988 BTC are currently held. These assets are legally forfeited cryptocurrencies. The government has full control over these coins. 

Meanwhile, the remaining 170,000 BTC are only seized (not yet forfeited). For example, around 94,000 BTC seized during the Bitfinex hack are in the process of being returned to creditors. If this happens, the government’s Bitcoin reserve will further decrease. 

Moreover, the “Strategic Bitcoin Reserve” plan proposed by Trump faces challenges. Many assets are not owned by the government but are temporarily controlled by agencies like the FBI or DEA. This invalidates claims that the government holds $24 billion worth of Bitcoin. The real figure is closer to $3.47 billion. 

Why Did the Sale Rumors Cause Fear? 

Last year, Bitcoin sales by various countries caused major volatility in crypto markets. This fueled fears that the Biden administration secretly sold Bitcoin. 

Prominent figures like Senator Cynthia Lummis have called for transparency. However, current data shows no evidence of large sales by the Biden administration. Intraledger transfers may have inflated the 200,000 BTC estimate, but this does not imply sales. Still, this discrepancy matters for investor confidence. 

I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins. 

If true, this is a total strategic blunder and sets the United States back years in the bitcoin race. https://t.co/ciYf1uhy0x

— Senator Cynthia Lummis (@SenLummis) July 16, 2025

The US government does not hold 200,000 BTC. The actual amount of 28,988 BTC reveals a clear, verifiable reality beyond market fears and rumors. This affects both the liquidation rumors during Biden’s term and Trump’s reserve proposals. The crypto community continues to watch the situation closely. 

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