The recent actions of the German government have left a bitter taste in the crypto market after selling nearly 50,000 BTC that were seized from the pirated movie website movie2k. This move has sparked curiosity about the amount of Bitcoin held by other governments and the potential impact on the market if they were to sell off their reserves.
Data from Bitcoin Treasuries reveals that a total of 517,414 BTC, equivalent to $32.9 billion, could flood the market if all nine governments currently holding Bitcoin decide to offload their reserves. These governments include the United States, China, the United Kingdom, Ukraine, El Salvador, Bhutan, Venezuela, Finland, and Georgia.
Among these governments, the United States holds the largest amount of BTC, with a reserve of 213,246 BTC acquired from the dark web marketplace Silk Road. The US government has already sold off some of its Bitcoin holdings, with the latest sale of 1,754 BTC taking place on April 2.
China is the second-largest holder with 190,000 BTC obtained from the Plus Token scam, a Ponzi scheme that promised high returns to investors. The United Kingdom holds 61,000 BTC seized from a money laundering case involving an ex-takeaway worker.
Ukraine follows with a reserve of 46,351 BTC, while El Salvador, known for its pro-Bitcoin stance, holds 5,800 BTC. El Salvador has been actively accumulating Bitcoin since adopting it as legal tender in September 2021.
Bhutan, Venezuela, Finland, and Georgia have smaller Bitcoin holdings compared to the other governments, with reserves of 621, 240, 90, and 66 BTC, respectively.
In contrast, asset managers like BlackRock hold a significant amount of BTC, totaling over 1 million BTC from their Bitcoin exchange-traded funds (ETFs). BlackRock leads the pack with 316,276 BTC, followed by Grayscale with 272,661 BTC for its GBTC Spot Bitcoin ETF.
Other prominent fund managers include Fidelity, Ark Invest, and Bitwise, with holdings of 176,995, 47,764, and 39,661 BTC, respectively.
At the time of writing, Bitcoin is trading at around $63,800, showing a 1% increase in the last 24 hours according to data from CoinMarketCap.
The bullish trend of Bitcoin is evident as it approaches $64,000, as depicted in the chart from Tradingview.com. This positive momentum in the market indicates continued interest and investment in Bitcoin.
In conclusion, the actions of governments and fund managers in the Bitcoin market have significant implications for its value and stability. The potential flood of Bitcoin into the market from government sales could impact prices and investor sentiment. As Bitcoin continues to gain traction as a digital asset, monitoring these developments will be crucial for understanding the dynamics of the crypto market.
