US Government Holds Seized Samourai Wallet Bitcoin, Market Structure Tests $95k Support

VADODARA, January 16, 2026 — In a statement that clarifies earlier market confusion, Patrick Witt, Executive Secretary of the White House Cryptocurrency Advisory Committee, confirmed the U.S. government has not sold the 57.55 BTC seized from the Bitcoin mixing service Samourai Wallet. This daily crypto analysis examines the on-chain implications and technical price action as Bitcoin hovers near $95k. According to Witt's post on X, the Department of Justice (DOJ) verified the assets remain unsold and will be held in a Special Blockchain Account (SBR) per an executive order, contradicting prior reports of a disposal by the U.S. Marshals Service.

Market Context & Background

This development occurs against a backdrop of heightened regulatory scrutiny on privacy-enhancing technologies in cryptocurrency. Samourai Wallet, a Bitcoin mixing service, was targeted by U.S. authorities in 2025 for alleged money laundering violations, mirroring earlier actions against Tornado Cash. The seizure represents a micro-liquidity event, but its handling signals broader policy shifts. Historical cycles suggest government-held Bitcoin—such as the Silk Road seizures—creates a persistent overhang on market psychology, as outlined in DOJ asset forfeiture guidelines. Related developments include Bitcoin futures long/short ratios nearing equilibrium and altcoin season indices plunging as Bitcoin dominance strengthens, indicating capital rotation into core assets amid uncertainty.

What Happened?

On January 16, 2026, Patrick Witt publicly clarified via X that the seized 57.55 BTC (valued at approximately $5.46 million at current prices) from Samourai Wallet has not been sold by the U.S. government. He stated this was confirmed with the DOJ, and the assets will remain on the government's balance sheet in a Special Blockchain Account (SBR), aligning with an unspecified executive order. This directly refutes earlier media reports suggesting a sale by the U.S. Marshals Service, which had prompted concern from pro-crypto Senator Cynthia Lummis. The clarification aims to mitigate market fears of sudden sell-side pressure, but it raises questions about the long-term custody and potential future use of these assets.

Technical Analysis & Price Action

Bitcoin's price action at $94,938 reflects a neutral sentiment, with a -0.84% 24-hour trend. Market structure suggests a critical test of the $95k support level, which aligns with a high-volume node on the Volume Profile. The Relative Strength Index (RSI) hovers near 50, indicating balanced momentum, while the 50-day moving average at $93,200 provides secondary support. A Fair Value Gap (FVG) exists between $96,500 and $97,200, representing a potential liquidity grab zone. Bullish invalidation is set at $92,500—a break below this Order Block would signal bearish continuation toward $90k. Bearish invalidation rests at $98,000, where a sustained move above could trigger a gamma squeeze toward $100k.

By The Numbers

Why It Matters

For institutions, the government's retention of seized Bitcoin reduces immediate sell-side liquidity pressure but introduces regulatory uncertainty for privacy protocols like Samourai Wallet, potentially chilling innovation in zero-knowledge proofs and mixing services. Retail traders face mixed signals: while the non-sale avoids a short-term dump, the precedent of state-held Bitcoin creates a psychological overhang, akin to a Sword of Damocles on market sentiment. On-chain data indicates UTXO age bands for seized coins remain static, but future moves could disrupt supply dynamics. This matters for the 5-year horizon as it sets a template for how governments manage confiscated crypto assets, influencing global regulatory frameworks.

Community Sentiment

Market analysts on X express skepticism. Some bulls argue the clarification stabilizes prices by removing a near-term sell threat, citing parallels to Ethereum's core protocol resilience. Others question the narrative, noting contradictions between Witt's statement and earlier USMS reports, with one trader posting, "Why the discrepancy? Either poor coordination or strategic ambiguity." Sentiment remains divided, reflecting the neutral Fear & Greed score.

Price Prediction / Future Outlook

Bullish Case: If Bitcoin holds above $92,500 and breaks $98,000, reduced sell pressure from government holdings could fuel a rally toward $105k, supported by institutional inflows and positive momentum from developments like macroeconomic shifts in energy policy. Market structure suggests a liquidity grab above $100k is plausible.

Bearish Case: A break below $92,500 invalidates the bullish setup, targeting $90k and potentially $88k. Regulatory overhang from seized assets could exacerbate selling if broader crackdowns emerge, with on-chain data indicating weak support below $95k.