The U.S. government controls 195,234 Bitcoins, totaling over $16 billion. A new bill could significantly increase these holdings.
Current U.S. Government Assets
According to a new Nansen report, as of March 12, 2023, the U.S. government holds 195,234 Bitcoins. Additionally, its crypto portfolio includes $4.6 million worth of Ethereum, stablecoins like USDC, and yield-bearing assets DAI and AUSDC_V2.
Proposed New Bill
A recently introduced bill by Rep. Nick Begich could dramatically increase government holdings. The bill proposes acquiring 1 million Bitcoins over the next five years, implying roughly 5% of the total supply. The dollar value of these purchases at today’s market price would be just under $110 billion.
Impact on the Crypto Market
If the bill passes, U.S. government Bitcoin holdings would surpass the estimated 1.1 million BTC attributed to Bitcoin’s mysterious creator, Satoshi Nakamoto. This would significantly influence market liquidity and price stability, potentially driving up Bitcoin’s value and reshaping market dynamics. However, such ownership raises concerns about centralization of a traditionally decentralized asset.
The new bill could significantly alter the power dynamics in the crypto market, raising both enthusiasm and concerns among market participants.
