We don't know what actually happened but for sure, they gained a lot from this sell-off, if they really did sell some of it. High likely, they did as we have seen the price declined and was also wondering at that time. But here we are, heading back to 70k again. That means, this sell-off showed that even multi-million or billion-dollar sell-off is involved, it won't cripple the btc market.
How much bitcoin is seized by the government I don't think it will be more than 5% so obviously this will not paralyze the market but with the correction still reasonable people will panic and sell because they get bad news that the US government will sell it by showing the transaction above.
Slowly bitcoin will definitely return to its starting point (in the sense that it is above $70K) the market reaction when it falls will not go up directly, in fact this is more of a stagnant price up and down not much different but when this news has dragged on the price goes back up, that's what I pay attention to even though my own speculation will not be accurate which is important to be optimistic as a Bitcoin holder.