The US government is one of the major Bitcoin owners. What are the ramifications of this for the Bitcoin market?

A large amount of Bitcoin is invested not only in the hands of large companies such as MicroStrategy or cryptocurrency exchanges.

The number of BTC holders also includes the US government, which received the coins by taking them out of the hands of criminals. In general, holding BTC is always a subject of controversy among cryptocurrency fans, as coins can cause a lot of fear in any news of their movement.

What will be the long-term impact of “official Bitcoins” on the digital asset industry? Let’s talk about what happens in detail.

bitcoin, cryptocurrency

We have explained the latest data: today, the richest Bitcoin address in the network of the first cryptocurrency belongs to the Binance crypto exchange. He has almost a quarter of a million BTC, or $6.6 billion. In second place is the cold storage of the Bitfinex exchange with a result of 178,000 BTC.

At the same time, we have already seen the negative impact of Bitcoin information on the US government and the market. In particular, at the end of April, the BTC rate fell by more than 8% in one hour. The reason is the false news that the US government and the hackers of the hacked crypto exchange Mt.Gox moved their own assets.

Since such operations can theoretically only be a sale of digital assets with similar market effects, cryptocurrency owners may begin to lose coins in a panic, which will lead to a similar result. Overall, this diet continues to work.

How many Bitcoins does the US government have? There are at least 50,000 BTC in crypto wallets under US government control.

Many of these coins ended up in the hands of authorities after the darknet’s Silk Road trading platform was forced to shut down nearly a decade ago. In addition to coins taken from Silk Road, this amount of assets also includes shares from other platforms that fall under the jurisdiction of government departments.

The purpose of a large market whale like MicroStrategy is clear to investors: the company’s management has repeatedly said that it is ready to hold Bitcoins for a long time. But the US government’s intentions are unpredictable, so in theory, it could sell seized coins at any time.

That is, because of this, the market can survive the risk even tomorrow, and investors have nothing to predict such an event. Complete even information about a possible sale.

As we have said, even fake news about the alleged transfer of digital assets from official wallets can affect the coin industry. Gordon Grant, head of trading at Genesis Trading, said official crypto wallets are getting more attention from analysts.

This is a consistent answer from an expert. Market participants have begun to look at the design of various outstanding displays of “real” government agencies. They also observe and monitor the timing and nature of trade execution.

Grant added that crypto addresses linked to the holdings of Silk Road Bitcoins are becoming an important factor in shaping the price of Bitcoin. It continues. Due to the level of transparency of the blockchain, there are more opportunities to monitor the movement of cryptocurrencies than other government agencies.

So, in terms of scope, rationality, and legitimacy, the US government’s actions on Bitcoin will continue to be closely scrutinized. For leaders, maintaining the stability of the crypto market is not an important task, as they are interested in maintaining control of the dollar.

If this will require further reductions in the price of Bitcoin, they will do so quickly, analysts agree. In an interview with Block, anonymous sources said the government could use Coinbase, the largest US crypto exchange, for trading.

Well, representatives of the trading platform refused to talk about the information received. The attack on the crypto market also took the form of a directive from the administration of US President Joe Biden.

In particular, at first, its representatives presented a plan to tax 30% of Bitcoin miners. For now, the only way is to negotiate. However, it has little chance of becoming a reality, believes Republican Senator Cynthia Lummis.

Leave a Reply