Global Governments Hold 2.6% of Bitcoin (BTC), Led by the US and China

According to CoinGecko, governments worldwide now hold 471,380.6 BTC, accounting for approximately 2.6% of all Bitcoin (BTC) in circulation. The United States and China are the largest holders, with their reserves stemming primarily from cryptocurrency seizures linked to criminal activities.

How Much Bitcoin Do Governments Hold?

As of July 29, 2024, global governments collectively hold 471,380.6 BTC, worth around $32.7 billion. This marks a growing trend of governments either seizing Bitcoin from illegal activities, receiving it through donations, or actively purchasing it. This increase in governmental Bitcoin holdings signifies the rising importance and recognition of digital assets in the global financial landscape.

United States

The United States government is the largest holder of Bitcoin, with 213,297 BTC obtained through cryptocurrency seizures. These holdings are valued at approximately $14.82 billion. A significant portion of this Bitcoin was seized during the shutdown of Silk Road, an online black market, where around 69,000 BTC were confiscated.

China

Despite its stringent crackdown on cryptocurrency trading and mining, China holds around 190,000 BTC, valued at approximately $13.20 billion. Most of this Bitcoin was seized from the PlusToken Ponzi scheme, which is one of the largest cryptocurrency scams to date.

United Kingdom

The United Kingdom has seized about 61,000 BTC, worth around $4.24 billion, from various financial crimes, including a significant money laundering operation. These seizures underscore the UK's commitment to combating financial crimes involving digital assets.

El Salvador

El Salvador stands out for its proactive approach to Bitcoin. As the first country to adopt Bitcoin as legal tender, El Salvador has been actively purchasing Bitcoin. The country currently holds 5,800 BTC, valued at approximately $0.40 billion, as part of a national financial strategy that includes the “1 Bitcoin per Day” program initiated in November 2022.

Ukraine

Ukraine has received a significant portion of its Bitcoin through donations to support its war efforts against Russia. The government and foundations in Ukraine have collectively received 1,336.4 BTC in donations, with the current balance standing at 186.18 BTC, valued at about $12.93 million.

Germany

Germany has confiscated 46,359 BTC, valued at around $3.02 billion, primarily from a 2013 operation against a piracy website. However, the German government liquidated its entire Bitcoin holdings as of July 12, 2024, impacting the market significantly.

Implication of Government Holdings

Governments holding large amounts of Bitcoin can influence market prices through their actions. For instance, the German government's liquidation of its Bitcoin holdings in mid-2024 triggered a selloff, causing Bitcoin's price to drop by 15.7%, from $64,547.32 to $54,418.46.

Conclusion

The growing governmental holdings of Bitcoin reflect a complex interplay of law enforcement actions and strategic financial decisions. The top five governments with significant Bitcoin holdings include the United States, China, the United Kingdom, El Salvador, and Ukraine. As cryptocurrency adoption continues to rise, governments are likely to impose more regulations on crypto assets, potentially leading to increased crackdowns on crypto-related scams and a safer environment for retail investors.

Some governments may also choose to actively purchase cryptocurrencies to diversify their national reserves and embrace digital finance innovations. This multifaceted approach illustrates the significant impact of cryptocurrencies on national and global economies. As digital assets further integrate into the global financial system, government-held cryptocurrencies will play a pivotal role in shaping the future of cryptocurrency adoption and regulation.

Methodology

This study examined data on government Bitcoin holdings as of July 29, 2024, from ArkhamIntelligence.com and Bitcointreasuries.net, as well as news articles from Reuters, BlockWorks.co, and Bitcoin.com. The top five governments holding Bitcoin are the United States, China, the United Kingdom, Germany, El Salvador, and Ukraine. Holdings in US Dollars (USD) were calculated using the price of Bitcoin at $69,482.75.

For more details, visit the original report on CoinGecko.