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U.S. Government Holds Significant Bitcoin Reserves, Accumulating $14.4 Billion in Unrealized Profits

Recent data from CryptoQuant and Arkham platform analysts reveal that the U.S. government has amassed substantial holdings of Bitcoin (BTC), totaling 210,392 BTC, valued at $14.4 billion. This accumulation positions the United States as one of the largest holders of the cryptocurrency.

Ki Young Ju, the head of CryptoQuant, highlighted that key government agencies such as the U.S. Department of Justice and the Internal Revenue Service have refrained from selling any Bitcoin since July 2023. As a result, the government’s unrealized profits from its BTC holdings have surged by 2.4 times during this period.

However, data from Arkham platform analysts presents a slightly different picture, indicating that the purported government-owned address actually stores 215,245 BTC, valued at approximately $14.8 billion.

Beyond Bitcoin, the government wallet also contains significant amounts of other cryptocurrencies, including 50,147 Ethereum (ETH), 10.14 million USD Coin (USDC), 5.36 million Dai (DAI), and 2.27 million Tether (USDT).

Public scrutiny of government-owned wallets has intensified within the crypto community, with concerns arising over the potential adverse effects of a large-scale sale of these assets on the global crypto market, which boasts a total capitalization exceeding $2.5 trillion.

Historically, the U.S. government has conducted transactions involving seized or confiscated cryptocurrency. For instance, in March 2023, Bitcoin confiscated from the Silk Road hacker was transferred to Coinbase. Subsequently, the government sold 9,861 BTC in April, followed by an announcement in January regarding the intention to sell assets related to the Silk Road case, amounting to 2,934 BTC.

In February, another significant transfer occurred, involving 15,085 BTC seized following the Bitfinex cryptocurrency exchange hack in 2016. The government’s action followed the theft of approximately $4.5 billion by hacker Ilya Lichtenstein from the platform.

The accumulation and management of cryptocurrencies by government entities underscore the evolving dynamics of digital asset ownership and regulation, shaping the broader landscape of the global crypto market.

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