The cryptocurrency market faced fresh selling pressure on Thursday, with prices dipping across major digital assets. One of the key triggers behind the sudden market pullback was a significant transfer of Bitcoin and Ethereum by the United States government.
According to on-chain data provided by blockchain intelligence platform Arkham, a wallet controlled by the US government moved 97.3 Bitcoin, worth around $8.46 million. The deal, completed at 17:23 UTC, caused traders to take notice immediately.
Wanpadet Sae Heng provided the funds from his criminal case because he fraudulently obtained money through a pig butchering scheme.
Roughly 20 minutes later, 88.43 Ethereum, valued at approximately $1.77 million, was also moved from the same government-tagged wallet. The ETH transfer was sent to a new address, continuing a trend of asset shuffling by federal agencies.
These movements fueled market speculation, with concerns over a possible government sell-off weighing heavily on sentiment.
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Heightened On-Chain Activity Sparks Investor Caution
The transfers are part of a growing pattern of activity from government-held crypto wallets. Two weeks earlier, a similar government-labeled address moved 299 AVAX linked to another enforcement case.
These back-to-back transactions have raised concerns among market participants about the timing and intent behind the movements.
While no official statement has confirmed whether the assets will be liquidated, the visible wallet activity has created fear, uncertainty, and doubt across the market. Traders often view such government-related moves as potential precursors to large-scale selling.
The US government holds the status as the largest sovereign owner of Bitcoin despite current Bitcoin transactions occurring. The wallet maintains about 198,012 BTC that currently amounts to more than $17 billion.
Legislation about a US Crypto Reserve continues to influence policy debates, and the Bitcoin Act stands under current consideration by Congress members.
The market reaction was immediate, with Bitcoin dropping by 2.02 percent in the last 24 hours to trade at $85,215, while Ethereum recorded a steeper decline of 5.73 percent, slipping to $1,899.
XRP followed suit with a 5.01 percent drop, now trading at $2.22, as the sell-off across these leading assets reflects growing investor caution amid increased government activity and regulatory uncertainty.
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