The US Government Holds Over 1% of Bitcoin Supply, Valued at $13.16 Billion
According to the latest data from IntoTheBlock, the U.S. government holds over 1% of the Bitcoin supply, valued at an impressive $13.16 billion. These holdings have tripled since 2021, demonstrating a consistent increase over the years.
It’s important to clarify that the U.S. government’s Bitcoin holdings are not the result of purchases but enforcement actions. These seizures typically occur in response to illegal activities.
Spikes in the amount of Bitcoin held by the US government are associated with the biggest BTC-related enforcement actions. Notable instances include the Silk Road case and the Bitfinex hack.
One of the most notable cases involved the seizure of approximately 174,000 bitcoins from Silk Road, a dark web marketplace. In 2016, hackers breached Bitfinex, stealing approximately 120,000 BTC. In February 2022, the Department of Justice announced the recovery of a significant portion of the stolen Bitcoin, valued at over $3.6 billion.
While Silk Road and Bitfinex are among the most prominent cases, several other significant seizures have occurred. In 2017, the US seized bitcoins worth $4 million from the BTC-e exchange during a multi-agency investigation into alleged money laundering activities.
Monitoring the holdings of large Bitcoin stashes, such as those held by the U.S. government, is crucial for understanding current market values and foreseeing potential market shifts.
The US government’s significant holdings challenge the narrative of Bitcoin’s decentralization and could influence market dynamics and investor behavior in the future. This high concentration of holdings poses a potential risk to the perception of Bitcoin as an asset beyond the control of government forces or major financial institutions.
