Rumors suggesting the US government had secretly sold off a large portion of its Bitcoin reserves were swiftly denied yesterday after new on-chain data emerged. Arkham Intelligence, a US-based blockchain analytics firm and public data platform, published updated figures confirming that the US Government still holds at least 198,000 BTC, currently valued at approximately $23.5 billion.These Bitcoin reserves are distributed across multiple addresses managed by various government agencies, including the US Marshals Service (USMS), FBI, DOJ, DEA, and US Attorney’s Offices. Despite claims of a major selloff, none of these holdings have moved in the last four months, indicating that the government continues to hold its Bitcoin stash intact.The rumors, which circulated widely on social media, were largely triggered by a misinterpretation of a Freedom of Information Act (FOIA) response from the USMS, which cited holdings of just 28,988 BTC. However, that number represents only a portion of the total reserves, not the entirety.Breakdown Of US Government Bitcoin HoldingsAccording to data from Arkham Intelligence, a significant portion of the US Government’s 198,000 BTC holdings—worth approximately $23.5 billion—originates from two major historical seizures: the Bitfinex hack and the Silk Road investigation.The largest single source is the 2022 seizure from Ilya Lichtenstein and Heather ‘Razzlekhan’ Morgan, who were arrested six years after the 2016 Bitfinex hack. Authorities seized 94,000 BTC from the couple, with additional recoveries bringing the total to 114,599 BTC, now worth $13.65 billion. These funds were originally stolen from Bitfinex customers and, pending legal proceedings, may be returned to victims through restitution.Another major contributor is the seizure of 69,369 BTC (currently $8.26 billion) from ‘Individual X’ in 2020. This person was believed to have exploited a vulnerability to access Silk Road funds years after the darknet marketplace was shut down. The US Government took possession of the BTC after ‘Individual X’ voluntarily forfeited the assets in a landmark case.Arkham also identified other sources of BTC held by US authorities, including smaller seizures from criminal operations and forfeitures resulting from legal settlements. These holdings are spread across wallets linked to agencies such as the US Marshals Service, FBI, and DOJ.This transparency debunks recent rumors about government sell-offs and provides clarity to the public. While the bulk of the seized BTC remains dormant, market participants are closely watching for signs of movement, given the significant potential market impact if liquidated. For now, however, all of these funds remain untouched, offering a buffer of reassurance as Bitcoin hovers near its all-time highs.Price Analysis: Consolidation Persists Between Key Technical LevelsBitcoin continues to trade within a narrow range between $115,724 and $122,077, as shown in the 4-hour chart. This sideways movement follows the strong rally earlier in July that pushed BTC toward new all-time highs. Since then, the price has failed to break above the $122,077 resistance, while buyers have managed to defend the $115,724 support multiple times.The chart also shows that BTC is hovering around the 50-period simple moving average (SMA) at $118,412, slightly above the 100-SMA ($116,614) and the 200-SMA ($111,678), which continue to slope upward—a signal that the macro trend remains bullish. However, declining volume during consolidation reflects indecision in the market.A breakout above $122,077 could trigger renewed momentum toward the next psychological level at $125,000. On the downside, losing the $115,724 support may lead to a deeper retracement, with the 100-SMA and 200-SMA acting as dynamic support zones.Featured image from Dall-E, chart from TradingView