• Thu. Jul 18th, 2024

Will the US Authorities’ Decision Blow up the Crypto Market?

Phillip Bryant

ByPhillip Bryant

Jun 27, 2024
Will the US Authorities’ Decision Blow up the Crypto Market?

The Bitcoin community has been captivated for a long time by the enormous 13 billion dollar Bitcoin stash that the United States government holds. A new piece of information has recently come to light, which sheds light on the significant size of the stake in comparison to its Ethereum holdings. As a result of this new development, questions have been raised about the possible market repercussions that could occur in the event that the government ever considered selling.

Will the Government Decide to Sell BTC?

The collection of Bitcoin, which totals 213,546 BTC, is significantly more extensive than the government’s Ethereum holdings, which amount to 53,900 ETH and are valued at a relatively modest $180 million.

The US government possesses a significantly larger amount of Bitcoin to sell than Ethereum. I don’t mind if $ETH surpasses $BTC at this point. $13 billion worth of Bitcoin is quite a substantial amount. This excludes GOX and the $3 billion worth of BTC held by Germany. In certain instances, they have been repeatedly making false claims about selling for a decade. The public ledger is undeniably accurate!

— Richard Heart

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Given the enormous 72-fold variation in ownership, there are valid concerns about the possible market ramifications that could arise if the government decides to sell off some of its Bitcoin reserves. This move could produce major market waves in the cryptocurrency space, which could drop Bitcoin’s price. Despite widespread speculation over potential sales, the government has maintained its stance and has not liquidated any of its digital assets as of yet.

However implausible it may be that the US government will sell off all of its Bitcoin holdings at once, even a partial liquidation might cause price drops due to increased market volatility.

In Which of the Cases Will ETH Be Able to Outperform BTC?

The continuous debate about a potential “flippening,” which is a scenario in which Ethereum’s (ETH) market value could surpass that of Bitcoin’s (BTC), is one of the primary elements that is contributing to the present market anxiety. Speculation about Ethereum’s potential to lead the decentralized banking industry has gained momentum. Some experts believe that Ethereum’s position could be further solidified during this anticipated shift if a more equitable approach to government investments were to be adopted.

Germany and a number of other countries, in addition to the United States, are in possession of approximately three billion dollars worth of Bitcoin. Even though there have been concerns regarding the possibility of divestments, the majority of these holdings have remained under the jurisdiction of the government.

Following the recent confiscation of 4,000 BTC from Silk Road on Coinbase Prime by U.S. authorities, there was a significant increase in market speculation, which caused concerns about the possibility of selling pressure. Given that Coinbase Prime processes significantly higher volumes of Bitcoin on a daily basis, market experts believe that the impact of sales may not be as significant as was initially predicted.

While the exact repercussions of the United States government’s Bitcoin holdings remain uncertain, the sheer size of these assets and the transparency of blockchain transactions ensure that any government actions will be closely scrutinized by the cryptocurrency community. This creates an exceptional and potentially volatile situation, where the decisions of a single government entity could significantly influence the global Bitcoin market.

Phillip Bryant

Phillip Bryant

Phillip Bryant, an esteemed writer in the financial field, imparts his extensive knowledge of currency markets to the readers of Main Crypto News. With a wealth of experience in international finance and a keen sense of market trends, Bryant offers timely and perceptive analysis of foreign exchange, keeping readers well-informed.

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