U.S. government holds $16B in Bitcoin, eyes 1m BTC under new bill
As of March 12, the U.S. authorities controls 195,234 Bitcoin, valued at greater than $16 billion, in accordance with a brand new Nansen report.
The federal government’s crypto portfolio additionally contains $4.6 million value of Ethereum (ETH), stablecoins equivalent to USDC, and yield-bearing property DAI and AUSDC_V2.
A newly proposed invoice, launched by Rep. Nick Begich, might dramatically enhance the federal government’s holdings. The Home Strategic Bitcoin Invoice goals to accumulate 1 million BTC, implying roughly 5% of Bitcoin’s whole provide, over the subsequent 5 years. If handed, the greenback worth of the purchases at in the present day’s market worth could be simply shy of $110 billion.
Implications for the Market
If the invoice passes, the U.S. authorities’s Bitcoin holdings would surpass the estimated 1.1 million BTC attributed to Bitcoin’s mysterious creator, Satoshi Nakamoto. This might give the federal government important affect over market liquidity and worth stability, probably driving up Bitcoin’s worth and reshaping market dynamics.
Nevertheless, this degree of possession raises considerations concerning the centralization of a historically decentralized asset. Giant-scale acquisitions might make the federal government a worth setter within the Bitcoin market which some argue stands in opposition to the unique ethos of cryptocurrency.
