Bitcoin’s Future: Analyzing the Impact of Government-Held BTC

• The U.S. holds the largest share of Bitcoin, with an estimated $12B among other governments.
• Germany plans to sell around $1.08 billion worth of seized Bitcoin through over-the-counter trades.
• El Salvador’s $314 million Bitcoin holdings represent a strategic investment in its national strategy to adopt Bitcoin as legal tender.

Data analytics firm Arkham revealed that several governments hold a combined $17.8 billion worth of Bitcoin, raising concerns about potential liquidations and their impact on the crypto market.

The United States, the United Kingdom, Germany, and El Salvador are among the governments holding significant amounts of Bitcoin, each with varying strategies for managing these digital assets.

The U.S. government holds the largest Bitcoin portfolio , with an estimated $12 billion worth of BTC, primarily seized from high-profile criminal cases such as the 2013 Silk Road shutdown.

Historically, the U.S. has auctioned seized Bitcoin, but recent reports suggest a shift towards more market-based approaches, including over-the-counter (OTC) sales. However, the timeline for future sales remains unclear, as the government typically keeps its plans confidential to prevent market manipulation.

The United Kingdom holds approximately $3.3 billion worth of Bitcoin, largely attributed to law enforcement operations. While the UK has been less vocal about its plans, its tax authority has previously auctioned seized cryptocurrency.

Germany’s Bitcoin holdings, valued at approximately $2.2 billion, recently made headlines with the government’s decision to sell over $1 billion worth of seized cryptocurrency through OTC trades. This move marks a significant shift from their previous approach of holding onto confiscated digital assets and is being closely watched by market participants.

El Salvador, however, has taken a different approach, accumulating $314 million worth of Bitcoin as part of a national strategy to adopt BTC as legal tender . Unlike the other governments, El Salvador’s Bitcoin treasury is a strategic investment rather than seized assets.