How Much Bitcoin Could Flood the Market If All Governments Decide to Sell?
🇩🇪 The crypto market recently felt the sting from Germany’s massive Bitcoin dump, nearly 50,000 BTC seized from the pirated movie site, movie2k. This move sparked curiosity about the volume of Bitcoin other governments might hold and the potential market impact if they chose to sell.
🌊 Data from Bitcoin Treasuries reveals a staggering 517,414 BTC (worth about $32.9 billion) could hit the market if all nine governments currently holding the cryptocurrency opted to sell their reserves.
🌎 These countries include the United States, China, the United Kingdom, Ukraine, El Salvador, Bhutan, Venezuela, Finland, and Georgia.
🇺🇸 The United States tops the list with a reserve of 213,246 BTC, mostly from seizures related to the dark web marketplace Silk Road. The U.S. has not shied away from selling its Bitcoin stash, with the most recent sale on April 2, offloading 1,754 BTC.
🇨🇳 China follows closely, holding 190,000 BTC, believed to have been seized from the Plus Token scam, a Ponzi scheme that duped investors with promises of high returns. The United Kingdom is next with 61,000 BTC, seized from a former takeaway worker convicted of money laundering.
🇺🇦 Ukraine holds 46,351 BTC, while El Salvador, known for its Bitcoin-friendly policies and being the first country to adopt Bitcoin as legal tender, has accumulated 5,800 BTC since September 2021.
🇧🇹 🇻🇪 🇫🇮 🇬🇪 Bhutan, Venezuela, Finland, and Georgia round out the list with smaller reserves, holding 621, 240, 90, and 66 BTC, respectively.
🤔 Impact on Crypto Trading Bots like Oxido Solutions
For companies like Oxido Solutions, which specialize in trend-following crypto trading bots, a flood of Bitcoin from government sales could present both challenges and opportunities. These bots, designed to capitalize on market trends, might find increased volatility a fertile ground for generating profits.
If a significant amount of Bitcoin were to suddenly flood the market, the immediate price impact could create rapid short-term movements. Trading bots could exploit these fluctuations, reacting on the increased volume and price swings. However, the unpredictability of government actions means that Oxido Solutions and similar firms would need to be extra cautious to handle sudden market changes effectively.
