Here’s How Much Bitcoin Would Flood The Market If All Governments Decide To Sell

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As a seasoned researcher with a deep interest in the crypto market, I have closely followed the recent news of the German government selling nearly 50,000 BTC seized from a pirated movie website. This event has raised concerns about the potential impact on the market if other governments decide to sell their Bitcoin reserves.

The German government’s unexpected sale of approximately 50,000 Bitcoin, previously obtained through the seizure of a pirated movie website named movie2k, left a bitter aftertaste in the crypto market. This event has sparked growing curiosity and investigation into the amount of Bitcoin held by various governments, as potential sales from them could significantly influence the market.

How Much Bitcoin Will Flood The Market If All Governments Sell

Approximately 517,414 Bitcoin worth around $32.9 billion could enter the market if the nine governments, which are the United States, China, the United Kingdom, Ukraine, El Salvador, Bhutan, Venezuela, Finland, and Georgia, were to sell their entire Bitcoin reserves.

The US government currently possesses the largest stash of Bitcoins among governments, amounting to approximately 213,246 coins. These Bitcoins were obtained as seizures from the illicit marketplace Silk Road. It is public knowledge that the US authorities have previously sold some of their Bitcoin hoard, with their last transaction taking place on April 2 when they disposed of 1,754 coins.

As a Bitcoin analyst, I’d rephrase the given information this way: I. China: With a Bitcoin stash of approximately 190,000 coins, China ranks second on the list of countries holding seized Bitcoins. These reserves are believed to be derived from the Plus Token scam, a Ponzi scheme that lured investors with enticing promises of high yields.

Ukraine ranks next on the list with a Bitcoin reserve of 46,351 units. El Salvador holds the third position, having amassed 5,800 Bitcoins in their government reserves. The El Salvadoran administration has gained notoriety for its supportive stance towards Bitcoin. They have been actively acquiring Bitcoins since the country legally recognized it as tender in September 2021.

In terms of Bitcoin holdings, El Salvador holds more than Bhutan (621 BTC), Venezuela (240 BTC), Finland (90 BTC), and Georgia (66 BTC).

Fund Managers Hold More BTC

Based on my analysis of the market trends, it comes as no surprise that institutions such as BlackRock have increased their holdings of Bitcoin. This is primarily due to their continuous acquisition of the flagship crypto through Bitcoin-backed exchange-traded funds (ETFs). According to Bitcoin Treasuries’ data, these institutional investors collectively control over 1 million BTC.

Among the mentioned fund managers, BlackRock holds the most significant bitcoin reserves, totalling 316,276 BTC for its IBIT Spot Bitcoin ETF. Following closely is Grayscale with a reserve of 272,661 BTC for its GBTC Spot Bitcoin ETF. The remaining top 5 include Fidelity with 176,995 BTC, Ark Invest with 47,764 BTC, and Bitwise with 39,661 BTC in bitcoin holdings respectively.

Currently, Bitcoin is priced approximately at $63,800 based on the latest information from CoinMarketCap, reflecting a 1% increase within the past 24-hour period.

Here’s How Much Bitcoin Would Flood The Market If All Governments Decide To Sell

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2024-07-17 01:41