Bitcoin (BTC) surged past the $100,000 milestone yesterday but faced a sharp correction early today (6th), briefly dipping below $90,000 before rebounding strongly. Amid this volatility, institutional "whales" seized buying opportunities, and they’re not alone—governments worldwide also hold significant Bitcoin reserves.
👉 Why Governments Are Hoarding Bitcoin
Global Bitcoin Holdings by Governments
As of July this year, governments collectively control 2.2% of Bitcoin’s total supply, typically acquired through seizures linked to criminal activities or donations.
1. United States (213,297 BTC | ~$19.6B)
- The largest government holder, with most BTC confiscated from illegal operations (e.g., dark web markets).
- Potential for further accumulation if the Trump administration follows through on campaign promises to establish a national Bitcoin reserve.
2. China (190,000 BTC)
- Despite strict bans on crypto trading/mining, China’s reserves stem from asset seizures tied to illicit activities.
3. United Kingdom (61,000 BTC)
- Primary holdings from dismantling a major money laundering ring.
4. El Salvador (6,000 BTC | 120% Unrealized Profit)
- The first country to adopt Bitcoin as legal tender (2021).
- Implements a "1 BTC per day" purchasing strategy since November 2022, showcasing long-term commitment.
5. Ukraine (186 BTC)
- A surprise entry, with holdings largely from global donations supporting war efforts.
FAQs
Q1: How do governments acquire Bitcoin?
- Primarily through asset seizures from criminal activities or donations (e.g., Ukraine).
Q2: Will the U.S. increase its Bitcoin holdings?
- Likely, if political promises to create a national reserve materialize under new leadership.
Q3: Why does China hold Bitcoin despite its ban?
- Reserves are unintended byproducts of law enforcement actions against crypto-related crimes.
👉 Bitcoin’s Future as a National Asset
Key Takeaways
- Governments are active players in crypto markets, with holdings impacting global supply.
- El Salvador’s systematic buying strategy sets a precedent for national crypto adoption.
- Ukraine’s innovative use of crypto donations highlights Bitcoin’s role in geopolitical crises.
Note: All hyperlinks except OKX were removed per guidelines.
### SEO Keywords:
1. Bitcoin holdings
2. Government Bitcoin reserves
3. El Salvador Bitcoin
4. USA Bitcoin confiscation
5. Ukraine crypto donations
6. Bitcoin $100K