The American government has an impressive amount over the years Bitcoin (Btc) accumulated. This was mainly due to seizures in criminal investigations.
This article illuminates the scope of these reserves, their origin and the possible effects on the cryptoma market when these bitcoins are moved or sold.
The origin of the American Bitcoin reserves
The American government has confiscated considerable amounts of Bitcoin (BTC) over the years through criminal investigations. One of the best-known confiscations took place in 2013 when the FBI was shouting the illegal online marketplace Silk Road and securing 69,370 BTC.
Almost ten years later, the Ministry of Justice (DOJ) revealed that it had confiscated more than 50,000 BTC by James Zhong. Zhong is said to have stolen these bitcoins from Silk Road.
In addition, a few years ago, the DOJ also confiscated Bitcoin worth $ 3.6 billion. These came from the 2016 Bitfinex hack. At that time, Hackers captured around 120,000 BTC.
Today the American government has around 198,109 BTC loud Data of the blockchain company Arkham. These bitcoins currently have a value of a total of $ 17.47 billion, the equivalent of around 16.6 billion euros. The American government has not bought a single bitcoins.
Effects on the cryptoma market
The American government’s large Bitcoin ownership can have a significant impact on the price. Especially when the government decides to sell a large part. When a German state sold a large part of its Bitcoins last year, this led to a clear crash.
In January there were also news that the American authorities had received approval to sell 69,000 BTC. One option is the sale of BTC via an auction. Another option is to sell cryptocurrency in phases to minimize the market effects.
Strategic Bitcoin reserve
Donald Trump has recently made it possible to keep the confiscated bitcoins. These bitcoins will serve as a strategic reserve. However, no new bitcoins are acquired from the American government to maintain budget neutrality.
The American government’s big Bitcoin ownership raises questions about how Crypto is seen and regulated. On the one hand, it can be a piece of recognition that Bitcoin is a valuable asset that should be held. But the unwillingness to buy new coins also shows that the United States does not consider it value to put more money into it.