Massive US Government Bitcoin Holdings Can Shake The Whole Market
Key Points:
- The US holds $12 billion in Bitcoin from criminal seizures.
- New strategies include over-the-counter (OTC) sales.
- The UK, Germany, and El Salvador also hold significant crypto.
US Government Bitcoin holdings total about $12 billion. UK and Germany hold $3.3B and $2.2B, respectively. El Salvador invested $314M.
According to Arkham, the US government holds approximately $12 billion in Bitcoin, primarily seized from criminal activities such as the 2013 Silk Road case.
US Government Bitcoin Holdings
The Department of Justice confiscated over $1 billion in Bitcoin related to Silk Road in 2020, marking one of the largest cryptocurrency forfeitures in history. The US government has traditionally used auctions to sell seized Bitcoin, with the US Marshals Service overseeing several events since 2014.
Recent reports indicate a shift towards more market-based approaches, including over-the-counter (OTC) sales, to liquidate these assets.
The timeline for future sales remains unclear, as the government typically does not announce plans in advance to prevent market manipulation. The huge amount of Bitcoin the United States holds has big implications for cryptocurrency markets and their regulatory framework.
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Global Bitcoin Holdings by Other Governments
The United Kingdom and Germany follow in big capitals, with around $3.3 billion and $2.2 billion in that order. Most of these originated through several law enforcers’ activities and seizures.
El Salvador has a $314 million investment in cryptocurrencies as part of a national initiative promoted by the country’s president, Nayib Bukele, the first in such a case among world governments.
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