The U.S. government, an unexpected crypto investor(Cryptocurrency Stash)? As we start 2024, it holds over $8 billion in Bitcoin. This surprising strategy reveals a bullish trend of Bitcoin and an active crypto seizure policy for 10 years.
Bitcoin, An Unexpected Treasure for the United States
The Bitcoin bullish rally brings joyful news for crypto holders. Its increasing price, the near-certain approval of a spot ETF, and the massive accumulation by the big investors mark the 15th anniversary of the leading cryptocurrency.
Due to this increase, the U.S. government saw the value of its held Bitcoins rise from 5 billion to 8.3 billion dollars in less than three months. This gain surprises, especially when we consider the past. Between 2020 and 2022, authorities seized 207,189 Bitcoins related to Silk Road, its pirate Jimmy Zhong, and the Bitfinex hackers. Less than 5% of these Bitcoins were sold, bringing in $215 million, a paltry sum compared to the current value.
Is the United States a leader in the crypto space?
The U.S. government’s premature selling strategy raises questions. Last July, the Justice Department transferred 8,200 BTC worth $252 million to Coinbase. However, it is not confirmed whether any transactions took place. If those transactions were counted, the U.S. government would have generated $640 million from seizing and selling Bitcoins over the last decade.
BTCUSD chart by TradingView
However, if the government had chosen to keep all its seized Bitcoins, it could have owned about 400,000 BTC, almost double its current stock, which could be worth $17.4 billion currently. Compared to other nations, Uncle Sam could possess the world’s largest governmental Bitcoin reserve, surpassing El Salvador, Ukraine, Bhutan, Venezuela, and Finland, who together hold only 4,000 BTC.
This substantial reserve thus positions the United States as a potential leader in the crypto field on the global stage. All of this raises questions about the future approach of superpowers towards cryptocurrency.
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