US Wallets Move $1B in Crypto Including 12,000 Bitfinex BTC to Coinbase

U.S. government-controlled wallets reportedly sent roughly $1 billion in cryptocurrency to Coinbase Prime, a transfer that included more than 12,000 BTC connected to the 2016 Bitfinex hack plus large amounts of USDT and other tokens, according to Zycrypto. The on-chain movement was flagged by analytics firm CryptoQuant and is one of the largest transfers in some time from U.S. government crypto accounts to an exchange.

The move drew attention because it landed while U.S. institutional selling was already outpacing activity on Binance, Coinpedia reported. That outlet’s read of the same week’s market data centres on the Coinbase Premium Index, which measures the price gap between Bitcoin on Coinbase and on Binance.

Key facts

• U.S. government wallets reportedly deposited about $1 billion in crypto to Coinbase Prime, including over 12,000 BTC tied to the 2016 Bitfinex hack, per CryptoQuant data reported by Zycrypto.
• Arkham’s labelling puts U.S. Bitcoin holdings at almost $25.38 billion, or 306,795 BTC, spread across 600 addresses, alongside smaller amounts of ETH, wrapped BNB and other tokens.
• Coinpedia reported Bitcoin fell below $84,000, triggering $812.95 million in liquidations across the crypto market.
• The hourly, volume-weighted Coinbase Premium was around -0.0012 to -0.0013 on October 12, Coinpedia reported, after staying mostly negative since mid-September and weakening further after October 7.
• U.S. spot Bitcoin ETFs saw $65.4 million in net outflows on October 12, all from BlackRock’s Bitcoin ETF, according to Coinpedia.

What the government deposit means

Read together, the two reports describe pressure coming from two directions. Zycrypto frames the Coinbase Prime deposit as a possible precursor to a sale: previous government transfers to the exchange had been smaller, and the size of this one raised the possibility that an eventual liquidation could begin with a first billion-dollar disposal. CryptoQuant’s data was cited as the basis for that reading.

Notably, the reporting offers no confirmation that a sale is coming. President Donald Trump had previously directed that forfeited Bitcoin “shall not be sold” outside limited cases such as court-ordered restitution or other lawful purposes, including the Bitfinex and FTX proceedings. No White House statement accompanied the transfer, leaving consolidation as a possibility alongside liquidation.

Coinbase Prime’s role is not incidental. It is an institutional custodian partner of the U.S. Marshals Service, which is why seized assets tend to arrive there rather than at a retail venue. Zycrypto noted that the government’s crypto holdings stem entirely from enforcement actions rather than any purchase programme, with the Bitfinex hack and the FTX-Alameda Research case among the sources.

Institutional selling and the premium gap

Coinpedia’s report supplies the market context that Zycrypto’s deposit story does not. It attributes the weaker Coinbase price to U.S. professional investors, who make up much of the exchange’s client base, and points to macro conditions: rising bond yields, a September CPI print expected at 3.7% headline inflation, and a U.S. Dollar Index above 102, its highest since April 2025.

The two reports do not conflict on the deposit itself; Coinpedia simply does not mention it, while Zycrypto does not carry the premium, ETF flow or liquidation figures. Both point to the same tilt in U.S. demand.

One counterweight appears in Coinpedia’s data. CryptoQuant figures show Bitcoin exchange reserves near 2.67 million BTC in early October, down from roughly 2.72 million BTC in late September, meaning less of the supply sits on venues ready to be sold.

Why it matters

The size of the government’s remaining stack is what gives the deposit weight. If any meaningful portion of the 306,795 BTC were sold, it would arrive as supply into a market where Coinbase Premium readings and ETF flows already point to soft institutional appetite. For U.S. investors, the premium gap is the more immediate signal: it shows they are paying less for Bitcoin than offshore buyers, a reversal of the conditions that have historically accompanied strong American demand.

What to watch

The September CPI report is the next scheduled data point likely to move this market, with Coinpedia flagging expectations of 3.7% headline inflation. Also worth tracking are the Coinbase Premium Index reading and whether the government wallets follow with further transfers or exchange outflows. Crypto analyst Ali Martinez, cited by Coinpedia, identified a four-hour close above $84,000 as the technical level to watch; he said such a move could open the way toward $93,000.

That technical target is an analyst’s view, not a forecast for certain — this is not financial advice, and crypto markets are volatile and can move against any stated level.

Disclaimer: This article is for information only and is not investment, financial or trading advice. Cryptocurrency prices are highly volatile. Always do your own research.

Sources: ZyCrypto, Coinpedia