The US government has been holding more than 205,515 bitcoins, worth over $5.6 billion at the current market rate, according to recent reports. This revelation has surprised many, as the government has traditionally been cautious about its involvement with cryptocurrencies.
Bitcoin’s Volatility Continues as US Government Stockpiles Cryptocurrency
The news of the US government’s massive Bitcoin holdings comes as the cryptocurrency’s price has been on a wild ride over the past couple of weeks. This volatility can be attributed to the rapidly unfolding banking crisis in the United States, as well as the federal government’s efforts to limit the fallout.
Bitcoin traders have been keeping a close eye on the cryptocurrency’s price as it surpassed $28,000 for the first time in nine months. However, it has since traded between $27,300 and $28,350 over the past 24 hours, as investors await a decision by the Federal Reserve.
The US government’s decision to stockpile such a large amount of Bitcoin has raised questions about their motives. Some experts believe that the government is concerned about fraudulent financial activities, scams, money laundering, and terrorism financing in the crypto industry.
Former Coinbase CTO Balaji Srinivasan has gone so far as to predict that the US government will cut off access to Bitcoin in response to the ongoing banking crisis. Srinivasan believes that many US fiat banks will go bankrupt, and the government will try to stop people from exiting the financial system.
Meanwhile, several corporations have also accumulated large amounts of Bitcoin. US-based software company MicroStrategy is the world’s biggest publicly traded corporate owner of Bitcoin, with holdings of 132,500 BTC worth about $2.194bn. Tesla, the company headed by noted crypto enthusiast Elon Musk, also holds a significant amount of Bitcoin.
As the US government’s Bitcoin holdings continue to grow, the cryptocurrency’s future remains uncertain. Traders and investors will be keeping a close eye on any developments in the banking crisis and the government’s stance on cryptocurrencies.