The US's non-Bitcoin crypto holdings could lead to a significant increase in BTC reserves. Let's explore how this might occur.
US Government's Crypto Holdings
While the US government's BTC holdings are well-known, their non-BTC crypto assets are less so. According to Arkham Intelligence, these don't include Solana (SOL), Cardano (ADA), or XRP. They hold: 60,850 ETH ($122.96 million), 122 million USDT, 750.722 WBTC, 40,293 BNB, BUSD at $13.62 million, and USD Coin at $13.4 million.
Converting Crypto to Bitcoin
Strategic liquidation and conversion could yield significant BTC. 60,850 ETH could be converted to about 1,522.86 BTC, and 122 million USDT to approximately 1,500 BTC. Combining remaining reserves like WBTC, BNB, BUSD, and AUSDC, they could achieve a total of 5,022.86 BTC.
Reasons for Crypto Liquidation
There are several reasons to convert to BTC: BTC is a market benchmark, offering greater liquidity and stability than most altcoins. Conversion to BTC reduces risk and simplifies portfolio management. It also impacts the market, potentially supporting BTC prices while temporarily depressing altcoin prices.
The potential for the US to gain 5,000 BTC through crypto liquidation brings attention. This highlights their growing influence in the crypto space and potential market changes.
