Bitcoin News: U.S. Moves $1B BTC From Bitfinex Seizure Wallet

A U.S. government-linked wallet moved roughly $1 billion worth of bitcoin on Oct. 8, extending a multi-day run of transfers from seized-asset addresses that traders have been watching closely as bitcoin trades near its lowest levels of the month.

According to blockchain intelligence platform Arkham, an address it identifies as holding U.S.-seized funds connected to the Bitfinex hack moved 12,267 BTC, worth approximately $1.01 billion, in a transaction recorded at 13:33 UTC. Arkham labels the sending address as belonging to the U.S. government.

The transfer followed other movements from government-linked wallets. In the preceding day, roughly $383 million in bitcoin and USDT was sent to Coinbase Prime, the institutional trading arm of the U.S. exchange. Over the same 48-hour window, the wallets sent 119 million USDT to Coinbase Prime and also moved 40,285 BNB, worth about $31 million. Despite the outflows, Arkham reported that the tracked government-linked wallets still held more than $24.98 billion in bitcoin.

Importantly, the on-chain activity does not confirm that federal authorities sold any of the transferred bitcoin. Moving coins to an exchange or custodian can precede a sale, but it can equally reflect internal custody reorganization, consolidation of seized assets, or preparation for court-ordered processes. No sale has been verified by the blockchain data alone.

The transfers landed in an already fragile market. Bitcoin traded near $81,800 as the $81,000 to $82,000 region came under pressure, sitting just $41.72 above its daily low of $81,315.66, according to CoinGecko data cited in the report. Other outlets tracking the same wallet activity noted that the U.S. government had moved 17,733 BTC, worth about $1.484 billion, to Coinbase Prime over three days, a stretch during which bitcoin fell roughly 7% and set an October low near $80,420. Forced liquidations were heavily skewed to one side, with about $859.17 million in long positions wiped out, accounting for roughly 86% of total market liquidations.

Prices recovered modestly after the selloff. CoinDesk reported that bitcoin held near $82,600 on Oct. 9 after President Donald Trump said he would not strike Iran before the U.S. midterm elections, pulling the largest cryptocurrency off the prior session's low of roughly $80,400 and shifting liquidation pressure onto bearish traders.

Government-held coins have become a recurring source of market anxiety because the addresses are publicly labeled and trackable by services such as Arkham. The Bitfinex-related holdings trace back to the 2016 breach of the exchange, a portion of which U.S. authorities later recovered. Because the balances are large relative to daily spot volumes, any visible movement tends to be interpreted by short-term traders as a potential supply event, even when the underlying purpose may be purely administrative.

Analysts tracking the flows have pointed out that attributing a specific price move to a single wallet transfer is difficult. Bitcoin's decline this week coincided with broader risk-off conditions, geopolitical headlines and leverage flushing across derivatives markets. Altcoins posted steeper percentage losses than bitcoin itself, with solana trading around $110.59, down 4% to 5%, BNB holding within a $740 to $744 range, dogecoin falling to $0.085, and NEAR dropping 11% to 12% to $4.87. Bitcoin dominance climbed toward 60% as capital rotated into larger-cap assets.

For now, the verifiable takeaway is narrow: a very large, publicly labeled wallet moved coins, the remaining balance is still substantial, and no confirmed disposal has been documented on-chain. Market participants following these flows should distinguish between transfers and sales, and treat unconfirmed wallet-flow narratives with caution. Nothing in this article is investment, financial or tax advice, and no on-chain event or price move guarantees any future outcome.

This is a news summary for general information only — not financial advice, and nothing here is a recommendation to buy, sell, or hold any asset. Always verify against the original source and do your own research before making a financial decision.