According to the Arkham Intelligence resource, as of January 9, the US government owned 198,000 BTC worth about $18.5 billion. This $6.5 billion from Silk Road is part of the same reserves.
Some analysts suggest that the outgoing Joe Biden administration may sell all bitcoins held by the government as part of a politically motivated decision ahead of the upcoming presidency of Donald Trump
Fox Business correspondent Jason Williams claims that the Biden administration instructed the Justice Department to sell thousands of bitcoins during the bull market, fully aware that the new Trump administration could buy them back at higher prices.
The price of bitcoin fell by 2.78% after the ruling. The decline occurred amid market concerns that a potential bitcoin auction by the Ministry of Justice could put additional downward pressure on BTC prices.
However, history shows that bitcoin auctions conducted by the US government have not had a significant impact on the price of BTC. For example, from March 2023 to the present, the US government's bitcoin reserves have decreased from 236,000 BTC to 198,000 BTC, representing a reduction of approximately 38,000 BTC, which at current prices is about 3.54 billion USD.
Glassnode co-founders Jan Happel and Yann Allemann explained how the US government manages bitcoin sales. They noted that after bitcoin is confiscated, the Department of Justice transfers it to the U.S. Marshals Service, which manages sales through public auctions. These auctions are transparent and do not involve selling bitcoin directly on cryptocurrency exchanges.
Direct sales on exchanges can overwhelm the market with supply, leading to a sharp drop in prices, while auctions minimize this risk.
Over the years, the government has seized and sold about 195,092 BTC, generating approximately $366.5 million in revenue from these auctions. However, at current prices, the total value of bitcoins sold is estimated at about $18.25 billion.
This means that the government has missed out on a potential benefit of almost $17.9 billion, highlighting the significant cost of missed opportunities due to the early liquidation of its assets.
"Last year, $379 billion entered the market, taking into account realized capitalization — about $1 billion per day," said Ki Yong—joo, founder and CEO of the CryptoQuant data platform.
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