After obtaining a court order, the U.S. government is set to sell 41,500 Bitcoin. The United States government currently holds more than 205,000 BTC as of March 27, making it the largest holder of the world’s largest digital currency.
Investors King understands that most of the bitcoins owned by the United States were seized from cryptocurrency scammers. In November 2022, the U.S. government seized 50,000 Bitcoin, following the arrest and subsequent guilty plea of James Zhong. James Zhong was a hacker who manipulated transactions system to steal bitcoin.
It would be recalled that out of the 50,000 bitcoin seized from James Zhong, the U.S. government sold 9,861 BTC for a total of $215 million on March 14, 2023.
With the latest court order, the United State government, therefore, noted that the remaining 41,490.72 BTC, which has a current value of $1.18 billion according to Bitcoin’s current price of $28,448, will be liquidated in four different batches this calendar year.
However, there has been a palpable fear that the sale of such an amount of bitcoin could significantly affect the price of the flagship cryptocurrency. Analysts believe the selling pressure can draw the price of bitcoin downward after showing an impressive ride since the beginning of the year.
Since the beginning of the year, bitcoin is up by more than 70 percent despite a number of negative news such as the collapse of three crypto-friendly banks in the United States.
It could be noted that bitcoin showed huge resilience amid the collapse of Silvergate Bank, Silicon Valley and Signature bank which shocked the U.S. banking system.
According to a report by Goldman Sach, the most capitalised cryptocurrency has so far emerged as the best performer in 2023, surpassing Nasdaq 100, gold, S&P 500, and other investment assets and sectors.