In recent years, Bitcoin has become an increasingly important topic for governments and financial institutions worldwide. With its decentralized nature and growing popularity, many countries have started to take notice and explore ways to regulate and control digital currency. In the United States, the government has taken a unique approach to Bitcoin, by not only regulating it but also seizing and holding large amounts of it.
According to recent statistics compiled by Dune Analytics, the US government currently holds 205,515 Bitcoin, worth $5.7 billion in current value, and representing 1.06% of the BTC circulating supply. This is a staggering amount, and it raises the question of how the US government acquired so much Bitcoin.
Citing data from Dune Analytics, Blocktempo reported that since 2020, the US government has seized over 215,000 BTC in at least three separate incidents. The largest of these incidents was the seizure of 69,369 BTC from the infamous Silk Road marketplace in November 2020. This was followed by the seizure of 94,643 BTC from Bitfinex hackers in January 2022, and the recent confiscation of 51,326 BTC from James Zhong in March 2022.
The amount of BTC held by the US government is definitely outsized compared to other Bitcoin whales. Currently, the US government has about 1.1 million BTC of Satoshi Nakamoto (held in 22,000 addresses but not used for long), and about 248,597 kept in cold wallets marked as Binance Exchange (there are a few other wallets, but mostly for customers). It holds the third-largest amount of Bitcoin after Satoshi Nakamoto and Binance.
This is far more than MicroStrategy, which holds the most Bitcoin of any publicly traded US company, with about 132,500 BTC. It is clear that the US government has become a major player in the Bitcoin market, whether intentionally or not.
The US government’s stance on Bitcoin has been somewhat mixed in recent years. While it has taken steps to regulate the currency and crack down on illegal activity, it has also recognized the potential benefits of Bitcoin and other cryptocurrencies. In fact, the Federal Reserve has been exploring the possibility of a central bank digital currency (CBDC) for some time now, and many experts believe that the US could eventually issue its own digital currency.
Regardless of the US government’s stance on Bitcoin, it is clear that it has become a significant player in the Bitcoin market. With over 205,000 BTC in its possession, worth billions of dollars, the US government’s Bitcoin holdings are not to be underestimated. As the cryptocurrency market continues to evolve and grow, it will be interesting to see how the US government’s involvement in this market develops.
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