The U.S. Treasury sold $2 billion worth of bitcoin from its reserve on Monday, sending the cryptocurrency down 5% in a single session. The sale, confirmed by the Treasury Department, marks the first major liquidation of the government's seized digital assets.
Why the Treasury sold
The Treasury said the sale was part of a routine rebalancing of its asset holdings, which include bitcoin confiscated in criminal cases. Officials described the move as a standard financial operation, not a response to market conditions. The $2 billion figure represents a significant portion of the government's known bitcoin stash, which has been built up over years of law enforcement actions.
Investors had been watching for such a sale for months. The Treasury had signaled in its quarterly financing schedule that it might reduce its crypto holdings, but the timing and size caught many off guard. The sale was executed through a series of large block trades, according to market participants.
Market reaction
Bitcoin fell from $67,000 to $63,650 within hours of the announcement, its steepest one-day drop in three weeks. Other cryptocurrencies followed, with ether losing 4% and smaller tokens shedding between 3% and 7%. Trading volumes on major exchanges spiked to nearly double their recent average.
The sell-off was sharp but not chaotic. Order books held up, and the price stabilized by the close of U.S. trading. Some traders said the move was a buying opportunity, while others worried about further government sales down the line.
What's left in the reserve
The Treasury did not disclose how much bitcoin remains in its reserve after the sale. Estimates from public blockchain data suggest the government still holds several billion dollars' worth, but the exact figure is unclear. The department said it would provide an updated inventory in its next monthly report.
That report is due in three weeks. Until then, the market will be guessing whether more sales are coming. The Treasury has not committed to a timeline for any additional liquidations, and officials declined to comment beyond the initial statement.
For now, the sale is done. The price has recovered slightly in early Tuesday trading, but the overhang of a still-large government position remains.
