Bitcoin Faces Selling Pressure as US Government Moves $1.44B in BTC, CryptoQuant Says

Highlights:

• US government Bitcoin holdings fell by 17,468 BTC, worth $1.44 billion, adding market pressure.
• Short-term Bitcoin holders transferred 45,600 BTC to exchanges, including 29,100 BTC moved at a loss.
• CryptoQuant warns Bitcoin could face a deeper correction if its price falls below the key $74,600 support level.

Bitcoin faces fresh selling pressure after tracked U.S. government holdings fell by 17,468 BTC, worth about $1.44 billion. Meanwhile, short-term investors are moving more Bitcoin to exchanges, raising concerns about another price decline. CryptoQuant says Bitcoin could face a deeper correction if it falls below the key $74,600 support level.

Blockchain analytics firm CryptoQuant shared the findings on October 9, 2026. The firm said Bitcoin had dropped 7% from its recent highs as government-linked transfers added pressure to an already vulnerable market. However, it identified profit-taking among investors as the main reason behind the weakness.

Bitcoin is down 7% from its highs.

U.S. Government BTC transfers sparked the pullback, but the market was already vulnerable due to elevated unrealized profits.

A thread 🧵 pic.twitter.com/TShjmYfyjH

— CryptoQuant.com (@cryptoquant_com) October 9, 2026

US Government Bitcoin Holdings Drop by 17,468 BTC

According to CryptoQuant, U.S. government-linked Bitcoin holdings dropped by 17,468 BTC between October 6 and October 8. On October 6, the government-linked wallets moved 569 BTC worth $48.6 million. Another 4,632 BTC, worth $385.8 million, moved on October 7. The largest movement came on October 8, when the wallets transferred 12,267 BTC worth around $1.01 billion.

Following these transfers, CryptoQuant tracked 174,481 BTC in U.S. government-linked wallets. However, the transfers do not necessarily mean the government sold the Bitcoin. The data only shows that funds moved out of the tracked wallets, not that the government sold them on the market.

CryptoQuant said these movements added pressure to Bitcoin’s price. However, many investors already held large unrealized profits. This means their Bitcoin had gained value, but they had not yet sold it. As prices fell, some investors may have decided to sell and lock in profits before Bitcoin dropped further. CryptoQuant explained that government transfers triggered the move, while rising unrealized profits had already weakened market conditions.

Short-Term Bitcoin Holders Move 45,600 BTC to Exchanges

According to CryptoQuant, short-term Bitcoin holders are also increasing selling pressure. The firm’s on-chain data shows that these investors moved 45,600 BTC to crypto exchanges within 24 hours. Of this amount, 29,100 BTC came from investors holding Bitcoin at a loss. This was the largest such inflow since June, when Bitcoin consolidated before its rally.

Short-term holders are investors who bought Bitcoin within the past 155 days. These investors often move their BTC to exchanges when they plan to sell. However, not every transfer leads to a sale. The latest figures suggest some recent buyers worry about further price declines and may sell before their losses grow.

CryptoQuant had also warned in its September 29 research that Bitcoin’s rally was losing momentum. At the time, traders’ unrealized profit margins had reached 33%, their highest level since December 2024. The firm identified profit-taking and slowing demand as possible risks to the recovery.

Bitcoin Must Hold $74,600 to Avoid a Deeper Correction

CryptoQuant identified $74,600 as a key support level for Bitcoin. This level marks the Short-Term Holder Realized Price, which shows the average price recent investors paid for their Bitcoin. According to the firm, Bitcoin needs to stay above $74,600 to maintain its early bull-market structure. If BTC falls below this level and stays there, more short-term holders could face losses, potentially leading to further selling.

However, if Bitcoin holds above $74,600, the market could maintain its current bullish structure. Much will depend on whether selling pressure slows and buyers can absorb the Bitcoin moving to exchanges. At the time of writing, Bitcoin traded at around $82,981, up 0.64% over the past 24 hours, according to CoinMarketCap.