US Government Emerges as Biggest Bitcoin Holder, how?

Bitcoin has been a highly sought after Crypto Currency since becoming a household name with many people across the globe pouring in millions of dollars each day to get their hands on the highly valuable digital asset. While El Salvador many years ago took the position to legalise Bitcoin against many nations and IMF, it appears the United States has been accumulating Bitcoin also. But not exactly by purchasing the asset off the open market or through investments.

The United States government is emerging as one of the world's largest Bitcoin holders with holdings estimated at $5.5 billion in value. While the United States is emerging as one of the biggest holders of Bitcoin many people are concerned about the impact of these holdings on the crypto currency's market dynamics and the broader financial landscape.

You might be reading this for the first time and thinking that it is a good thing that the US see's the future potential for the digital asset. But as we delve into how the US has come across these holdings, some concerning trends emerge and with silence by the government on what it plans on doing with these assets, it could be a shaky period a head.

United States HODL
Fortunately for us in the Western World a lot of information is publicly available, although Government agencies don't tend to promote the information and people need to go digging. But it is still there for people to see.

A recently published report has showcased the United States growth of Bitcoin with it's first mass accumulation phase occurring in 2020 as a result of the Silk Road Seizure netting itself a whopping 69,369 Bitcoins.

It then took action in 2022 on the Bitfinex Hacker managing to accumulate an impressive 94,643 Bitcoins and in March 2022 it seized a further 51,326 Bitcoins from James Zhong. The other interesting part of this is that on 9 March 2023 the US Government sent 49,000 Bitcoin to Coinbase.

The reason why that is interesting is the fact that the Securities and Exchange Commission (SEC) is suing Coinbase for financial breaches and it's kind of a foot in mouth position because the US Government looks to be using Coinbase to dump those assets. Although emails and correspondence leaked by Coinbase executives showcased how the SEC was trying to get the company to cease all other assets except Bitcoin.

I mean, well played US Government, Shut down all other cryptos, funnel the market to Bitcoin and then dump on them? I guess everyone looks to put themselves in the best position possible?

Responsible Financial Decisions

While we can speculate on their motives we can take some assurance that with the high media attention and current sentiment in the market we highly doubt the US will damage itself politically by dumping it's holdings on the open market. Given that many suggest the US is against Crypto it appears not to be the case as if it really wanted to end the sector it could do so tomorrow by selling all it's holdings causing trillions in losses and billions in liquidations.

The US tends to sell Bitcoins at auction outside of the market to not cause chaos and it's last auction netted it's bottom line USD215 Million.

You can head over to the U.S. Marshals Service for the current invitation to buy bitcoin cheaply. Although I am not too sure that the US should be off loading their Bitcoin given that all these digital assets have mainly been acquired through regaining assets stolen in hacks. There should be an emphasis in returning those funds to their rightful holders.

The United States Influence
Given that it has such a large holding of Bitcoin we can probably confirm at this point that it showcases how the US can influence the market at it's whim. Now with the most holdings it can cause the market to go down and as it continues to step in an accumulate stolen assets it is also able to retain the Bitcoin price.

Imagine if it announced that it would burn it's total holdings as if it were a crop of weed or a recent shipment of cocaine destined to be incinerated. Well, an announcement like that by the US and if it kept doing it would see Bitcoin become extremely scarce and within days most likely peek to over USD100,000 per token.

While we can speculate on the what if's the most likely outcome of these holdings wont be on centralised exchanges and rather a continued auction style. But don't get your hopes up as it states on the website it isn't an offer to sell but rather an invite to buy. This means the US Government will be extremely cautious on who it sells the Bitcoin's too (I mean can it sell Bitcoins? where's the SEC I don't think that department has a financial services licence lol). More than likely these Bitcoin's are going cheaply to mainstream bankers who have been growing their dominance in this space.

I could go on how it is an unfair advantage yada yada but this has been occurring for centuries, Governments pick and choose the orgs, businesses, corps that they support which is why everyone always loves the story about the underdog that fights back and gets a leg up.

Interesting times a head, what are your thoughts?

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Posted Using InLeo Alpha