Recent large Bitcoin transfers by the United States and Germany have intensified investor panic in the volatile market. This article summarizes the Bitcoin holdings of 5 countries and their recent developments.
Table of Contents:
United States government: Profits exceed $360 million to date, limited impact from recent sales
Chinese government: Over 190,000 Bitcoins seized in Ponzi scheme; rumors of recent shipments unverified
United Kingdom government: Over 60,000 Bitcoins seized in money laundering case, no sales made yet
German government: 1/5 of Bitcoin holdings seized from pirate movie website already transferred
El Salvador: Floating profits over $50 million, no plans for selling
The cryptocurrency market is currently treading on thin ice with the market panic index hitting a high. Apart from the upcoming Bitcoin compensation program by Mt. Gox, the United States and Germany have made significant transfers, albeit manageable by the market at its current capacity. However, in the midst of market fluctuations, these sell-offs are further fueling investors’ anxiety.
State-owned Bitcoin whales have become significant players, with their holdings changes drawing market attention. This article reviews the Bitcoin holdings and recent movements of 5 countries, collectively holding over 518,000 BTC, accounting for more than 2.4% of the total Bitcoin supply, mainly derived from law enforcement actions. In terms of profits, besides the US selling over 190,000 Bitcoins and Germany transferring out 20% of its holdings, the rest have not undergone substantial sell-offs.
The United States government holds the most Bitcoins among countries, with Arkham data revealing holdings exceeding 213,000 Bitcoins, valued at over $12.97 billion as of June 27. These Bitcoins originate from operations like Silk Road, Bitfinex hack, and hacker James Zhong, with the US government accumulating at least 195,091 Bitcoins since 2014, generating profits exceeding $366 million.
In the past week, the US government sent 3,940 Bitcoins to Coinbase Prime, originating from an Indian dark web drug trafficking case valued at around $240 million. However, according to CryptoQuant CEO Ki Young Ju, this transaction had minimal impact on the market due to Coinbase Prime handling daily sell orders ranging from 20,000 to 49,000 BTC during peak ETF inflows, and 6,000 to 15,000 BTC during low periods.
The Chinese government ranks second in Bitcoin holdings, with Bitcoin Treasuries data indicating holdings of 194,000 Bitcoins, valued at $11.84 billion. These Bitcoins were seized from the PlusToken Ponzi scheme in 2020. Speculations suggest that the Chinese government might be liquidating its holdings, but without precise tracking addresses, the specific changes in Bitcoin holdings remain unknown.
The UK government is also a major Bitcoin holder, currently owning around 61,000 Bitcoins valued at over $3.