A Missed Opportunity: US Government Loses $116 Million by Selling Bitcoin Trove in March
The US government’s decision to sell thousands of Bitcoin on the open market earlier this year has proven costly. In March, the government sold 9,861 BTC worth around $216 million at the time. However, the value of that BTC has since increased to $332 million, resulting in a missed opportunity of $116 million.
Seized Bitcoin and Future Sales
The US government acquires Bitcoin primarily through seizures related to criminal proceedings. By the end of this year, it plans to sell the remaining 41,490 BTC seized from James Zhong, who pleaded guilty to wire fraud in connection with Silk Road. Despite this year’s sales, the US still holds over $5.5 billion in Bitcoin, accounting for nearly 1% of its total circulating supply.
Bitcoin’s Price Surge
Bitcoin’s market cap has experienced significant growth this year, rising from $16,615 on January 1st to $33,575 at the time of writing – a 102% increase.
Hot Take: Missed Gains and Government Holdings
The US government’s decision to sell its Bitcoin trove in March has cost it dearly, missing out on potential gains of $116 million as the cryptocurrency’s value soared. While the government continues to hold a substantial amount of Bitcoin worth over $5.5 billion, it remains to be seen how future sales will impact its holdings and potential profits. As Bitcoin continues its upward trajectory, governments and institutions will need to carefully consider their strategies for managing and selling digital assets.
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