“The US government’s missed opportunity to tap into the surging Bitcoin market has cost them a staggering $6 billion, highlighting the need for proactive policies in the rapidly evolving cryptocurrency space.”
Bitcoin, valued at over $7.2 billion, is still under the control of the United States government, but its losses are increasing. On-chain analytics firm Glassnode’s data reveals that the US government currently holds 210,429 BTC as of October 31st. The US Department of Justice (DOJ) and Internal Revenue Service (IRS) have become well-known as some of the largest Bitcoin holders in the world, having confiscated significant amounts of BTC through legal proceedings. However, only a small portion of the seized Bitcoin has been resold at auction.
Those who have bought the confiscated Bitcoin at auction have profited greatly, highlighting the irony that the DOJ, acting more like a Bitcoin newbie than a whale, has sold off its holdings too soon. According to Jameson Lopp, co-founder of Bitcoin custody firm Casa, the government has missed out on potential gains of over $6 billion from its 195,092 BTC sell-off.
No single entity, other than Bitcoin’s mysterious creator Satoshi Nakamoto, owns more BTC than the DOJ. The largest corporate BTC treasury, owned by MicroStrategy, consists of 158,245 BTC ($5.43 billion). Glassnode’s data shows that the DOJ’s Bitcoin stash continues to grow alongside announcements of confiscations.
In early 2022, the DOJ’s inventory increased by nearly 100,000 BTC, worth $3.6 billion at the time. This was due to legal action against individuals accused of attempting to launder the proceeds of a 2016 hack of the major crypto exchange Bitfinex.
Meanwhile, billionaire investor Tim Draper, who was one of the original bidders at the Bitcoin auctions, has accused the U.S. government of suppressing crypto growth. Draper had previously predicted a $250,000 BTC price for 2022 but now claims that policy failures are hindering the growth of the crypto industry.
Draper believes that regulations are stifling innovation and wrote in a May post, “Regulations smother innovators.” However, readers should note that this article does not provide investment advice, and it is essential to conduct thorough research before making any investment or trading decisions.