Governments Selling Bitcoin!? What Does It Mean For BTC!?

Summary

This video explores the substantial Bitcoin holdings of various governments, primarily acquired through seizure from illicit activities. It delves into how the US, China, the UK, and Ukraine came to hold significant amounts of BTC, the impact on crypto markets, and the potential future of these assets. The US government's holdings, largely from the Silk Road and other high-profile cases, are contrasted with China's seizure from the Plus Token scam. The video also speculates on the implications of these holdings for market stability and the potential for governments to become major players in the crypto space.

Takeaways

• 🇩🇪 The German government's sale of its BTC holdings has raised concerns about potential market disruptions from similar actions by other governments.
• 🇺🇸 The US government holds the largest known stash of crypto, with over 213,000 BTC, acquired mainly through seizure from illicit activities rather than purchases.
• 💡 The US government's crypto holdings also include significant amounts of ETH, BNB, USDC, and USDT, totaling around $4 billion at the time of the video.
• 🕵️‍♂️ A notable portion of the US government's BTC comes from the Silk Road darknet marketplace, including a significant seizure from the anonymous hacker known as 'Individual X'.
• 🇨🇳 The Chinese government once held over 190,000 BTC, seized from the Plus Token scam, and is believed to have exchanged most, if not all, of it.
• 🇬🇧 The UK government has confiscated over 61,000 BTC from various cases, including a high-profile money laundering case involving funds from an investment fraud operation in China.
• 💰 The confiscated crypto assets are typically secured in cold storage during investigations and later converted to fiat currency through auctions or exchanges.
• 🤔 The future of government-held crypto is uncertain, with possibilities ranging from being sold off to potentially being used as a reserve currency.
• 🇺🇦 Ukraine has received significant crypto donations for military and humanitarian aid during the conflict with Russia, and has also seized crypto in corruption cases.
• 🏦 Central banks will be allowed to hold up to 2% of their reserves in crypto from January 1, 2025, which could significantly impact the crypto market.
• 🔮 The crypto market's reaction to government sales of seized crypto is a key concern, as it can cause fear, uncertainty, and doubt (FUD), affecting market stability.

Q & A

Why did the German government's sale of BTC cause concern in the crypto market?

The German government's sale of BTC raised concerns because large-scale selling by governments could cause significant market fluctuations and instabilities, potentially leading to 'Mayhem' as mentioned in the script.

Which government holds the largest crypto stash according to the video?

According to the data from Arkham mentioned in the script, the US government holds the largest crypto stash, with over 213,000 BTC.

How did the US government acquire its crypto holdings?

The US government's crypto holdings were not purchased but seized from individuals involved in illicit activities, such as hacking and fraud.

What is the story behind 'Individual X' and the Silk Road?

Individual X is an anonymous hacker who stole over 69,000 BTC from the Silk Road darknet marketplace between 2012 and 2013. The hacker was apprehended in February 2015 and all stolen BTC were confiscated.

What was the mistake made by James Jong that led to his capture?

James Jong was caught after he called 911 reporting theft from his residence, which led to an investigation. His mistake was sending some of the stolen BTC to an exchange without proper obfuscation, leading to his identification.

What is the total value of the US government's crypto holdings as mentioned in the script?

The total value of the US government's crypto holdings is at least $4 billion at the time of the video's production.

How has the US government managed the confiscated BTC?

The US government typically manages and secures the confiscated BTC in cold storage during investigations and then converts these funds to fiat currency through auctions or exchanges.

What is the situation with the Chinese government's holdings of BTC?

The Chinese government once held over 190,000 BTC, seized from the Plus Token scam project. It is believed that most, if not all, of this crypto has been exchanged as part of the seizure ruling.

What was the outcome for Ilia 'Dutch' Lonstein and Heather Morgan after their arrest for laundering BTC from the Bitfinex hack?

Ilia Lonstein confessed to being responsible for the Bitfinex hack and was still in jail awaiting further sentencing, while Heather Morgan was released on bail.

What is the UK government's stance on crypto assets seized from criminals?

The UK government has the authority to seize, freeze, and destroy cryptocurrency used by criminals. If no one is entitled to the stolen assets, they are sold off, with half of the funds going to the police and the other half to the Home Office.

What impact did the conflict between Russia and Ukraine have on crypto donations to Ukraine?

The conflict led to a significant amount of crypto donations to help Ukraine with military and humanitarian funding, with over $225 million worth of crypto reportedly raised from supporters worldwide.

What are the potential future scenarios for governments holding seized crypto?

Governments may sell the seized crypto at some point, which could suppress the markets, or they might keep their crypto holdings as a reserve to support their local fiat currencies, depending on regulatory developments and market conditions.

Outlines

00:00

🏦 Government Crypto Holdings and Their Impact

This paragraph discusses the significant crypto holdings of various governments, highlighting the potential market impact if they were to sell. It emphasizes the US government's leading position with over 213,000 BTC, mostly seized from illicit activities, such as the notorious Silk Road marketplace and individuals like 'Individual X' and James Jong. The paragraph also mentions other cryptocurrencies held by the US, totaling around $4 billion. It raises concerns about the possible market mayhem if governments decide to sell their crypto assets.

05:02

💰 US Government's Bitcoin Auctions and Future Plans

The second paragraph delves into the US government's management of confiscated Bitcoin, stored in cold storage during investigations and later converted to fiat currency through auctions or OTC sales. It details the sales made between 2014 and 2023, amounting to over $360 million. The funds are typically directed to law enforcement budgets or public services. The paragraph speculates on the US government's potential strategies for its remaining Bitcoin holdings, suggesting they might wait for regulatory clarity before making significant moves, possibly influenced by the US presidential election campaign and the vice president's known Bitcoin holdings.

10:02

🐉 China's Seizure and Management of Crypto Assets

This paragraph examines the Chinese government's crypto holdings, which at one point exceeded 190,000 BTC, seized from the Plus Token scam. It describes the Plus Token project, the arrests made, and the court's decision to process and forfeit the seized digital currencies to the National treasury. The paragraph also touches on China's past confiscation of crypto equipment and its crackdown on crypto mining and trading while maintaining a legal stance on crypto ownership. It raises speculation about possible state-owned mining operations and the potential sale of any mined crypto.

15:03

🇬🇧 UK Government's Confiscated Crypto and Legal Actions

The fourth paragraph focuses on the UK government's confiscated Bitcoin, amounting to over 61,000 BTC, seized from a citizen involved in a Chinese investment fraud. It narrates the case of Gian Wen, her arrest, and conviction for money laundering, as well as the ongoing civil recovery investigation that could lead to the forfeiture of the confiscated Bitcoin. The paragraph also mentions the UK's new law allowing authorities to seize and destroy illicit crypto assets, and the challenges faced by fraud victims in recovering their stolen funds.

20:04

🇺🇦 Ukraine's Crypto Donations and Seizures Amid Conflict

The final paragraph discusses Ukraine's crypto scene, particularly the donations received during the conflict with Russia, which totaled over $225 million in various cryptocurrencies. It also covers the Ukrainian government's own crypto holdings, declared by public officials, and instances of crypto seizures from illicit activities, such as the case involving the former Head of State Communications. The paragraph ponders the potential effects of government-held crypto on the market, considering both the risks of sales and the possibilities of governments keeping or even mining more crypto as a reserve currency.

🚀 Potential Future Developments in Government Crypto Policies

In the concluding paragraph, the video anticipates two major bullish catalysts for crypto from a governmental perspective. The first is the potential for positive crypto regulations in the US if the likely next president and his crypto-friendly VP take office. The second is the upcoming rule change allowing central banks to hold up to 2% of their reserves in crypto from January 1st, 2025, which could lead to significant purchases by governments. The paragraph leaves viewers with the impression that the crypto market could be in for a wild ride as governments' attitudes and actions towards crypto evolve.

Keywords

💡Cryptocurrency

Cryptocurrency refers to digital or virtual currencies that use cryptography for security and operate independently of a central bank. In the video, cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and others are central to the discussion as they are held by various governments and are the subject of legal and financial scrutiny. The video discusses how governments have seized and are holding significant amounts of cryptocurrencies, which could impact the market.

💡Bitcoin (BTC)

Bitcoin is the first and most well-known cryptocurrency, created in 2009. It is decentralized and operates on a peer-to-peer network. The video script mentions that various governments hold large amounts of BTC, which they have seized from illicit activities. For example, the US government reportedly holds over 213,000 BTC, and the Chinese government is believed to have held over 190,000 BTC at one point.

💡Seizure

Seizure in the context of the video refers to the act of legally taking possession of property, typically in relation to criminal activities. Governments have seized cryptocurrencies from individuals involved in illegal activities, such as hacking and money laundering. The video provides examples of such seizures, including the confiscation of over 69,000 BTC from 'Individual X' and over 51,000 BTC from James Jong, both related to the Silk Road marketplace.

💡Illicit Activities

Illicit activities in the video refer to criminal actions such as hacking, money laundering, and fraud. These activities are the reason why governments have been able to seize large amounts of cryptocurrencies. The video discusses several cases where individuals were involved in illicit activities, leading to the seizure of their cryptocurrency holdings by law enforcement.

💡Silk Road

Silk Road was an infamous online black market that operated on the dark web, known for selling illegal goods and services. The video mentions Silk Road in the context of two hackers, 'Individual X' and James Jong, who stole large amounts of BTC from the marketplace. These stolen bitcoins were later seized by the US government, highlighting the connection between illicit activities and the accumulation of cryptocurrencies by governments.

💡Money Laundering

Money laundering is the process of making illegally-gained proceeds (i.e., 'dirty money') appear legal (i.e., 'clean'). In the video, the term is used to describe how individuals have used cryptocurrencies to conceal the illegal origins of their wealth. For instance, the video discusses a case where a UK citizen named Gian Wen was found guilty of laundering funds from an investment fraud operation in China, involving the conversion of stolen money into BTC.

💡Cold Storage

Cold storage in the context of cryptocurrencies refers to keeping them in a secure, offline environment to protect them from being stolen by hackers. The video mentions that governments typically manage and secure their seized cryptocurrencies in cold storage while investigations are ongoing, emphasizing the importance of security in handling these assets.

💡OTC Auction

OTC (Over-the-Counter) auction refers to a method of trading where transactions are conducted directly between two parties without going through a centralized exchange. The video mentions that governments often convert their seized cryptocurrencies to fiat currency through OTC auctions, which can be a significant source of revenue for law enforcement budgets or other public services.

💡Inflation Hedge

An inflation hedge is an asset that is expected to maintain or increase its value during times of inflation, protecting investors from the loss of purchasing power. The video discusses the possibility that some might consider cryptocurrencies like BTC as a potential hedge against inflation. However, it also notes that the amount of BTC held by governments is relatively small compared to their overall financial assets, making it unlikely that they would use it as a primary hedge.

💡Crypto Regulations

Crypto regulations refer to the legal frameworks and rules governing the use and operation of cryptocurrencies. The video suggests that the future actions of governments regarding their cryptocurrency holdings could be influenced by the development of these regulations. It also hints at the potential for governments to become more involved in the cryptocurrency space, either by buying or mining cryptocurrencies, depending on regulatory clarity.

💡National Treasury

The National Treasury refers to the central financial and accounting office of a country, responsible for managing the government's finances. In the video, it is mentioned in the context of the Chinese government's seizure of cryptocurrencies, where the proceeds from the sale of these assets are forfeited to the National Treasury, illustrating the government's control over confiscated assets.

Highlights

The German government's sale of its BTC holdings has raised concerns about potential market disruptions.

Governments worldwide hold significant BTC amounts that could impact markets if sold.

The US government holds over 213,000 BTC, primarily seized from illicit activities.

Individual X, an anonymous hacker, had over 69,000 BTC stolen from the Silk Road marketplace.

James Jong, another Silk Road hacker, was apprehended after a 911 call and pleaded guilty to wire fraud.

Ilia 'Dutch' Lonstein and Heather Morgan were arrested for laundering BTC from the Bitfinex hack.

The US government has sold over $360 million of BTC through auctions between 2014 and 2023.

China seized over 190,000 BTC from the Plus Token scam, one of the largest crypto scams.

Chinese officials have also confiscated crypto mining equipment despite a crypto mining ban.

The UK government holds over 61,000 BTC seized from a money laundering operation involving investment fraud.

Ukraine has received over $225 million in crypto donations for military and humanitarian aid.

Ukrainian officials have been found to own over 46,000 BTC, raising concerns about corruption.

Government-held crypto sales can suppress markets and create uncertainty.

The potential for governments to buy and hold BTC as a reserve currency could be a bullish catalyst.

As of January 1st, 2025, central banks will be allowed to hold up to 2% of their reserves in crypto.

The next US presidential administration may bring positive regulations for the crypto industry.

Governments may opt to mine BTC rather than purchase it, potentially impacting the market.

Transcripts

if you've been keeping up with crypto

lately you'll know that the German

government has just finished selling off

its BTC this Uber dump had everyone

concerned but what's even more

concerning is that the Germans Are Not

Alone governments around the world have

stacks so big that if they were to sell

it could cause Mayhem in the markets so

today we'll tell you which governments

hold the most BTC how they got their

hands on it and what they plan to do

with their massive

Stacks we'll start with the government

with the largest crypto stash and it

probably won't be a surprise to learn

that that Crown belongs to the USA

according to data from Arkham the US

government holds over

213,000 BTC although different sources

suggest different amounts due to which

wallets are included in the data anyway

Arkham's data suggests that the US

government's crypto Holdings Al o

include 750 wrapped BTC 50,000 eth

40,000 BNB 10 million usdc and over 121

million usdt bringing its total crypto

Holdings to a whopping $4 billion at

least at the time of shooting however

while it might look like Uncle Sam is

one allmighty giga whale the US

government has reportedly never actually

bought any BTC instead all of its crypto

Holdings have been seized from those

involved in illicit activities one

notable standout comes from somebody

simply known as individual X an

anonymous hacker whose identity is

apparently known to us authorities but

not the public anyway sometime between

2012 and 2013 individual X managed to

hack into the informous silkroad darknet

marketplace and steal over

69,000 BTC apparently Silk Road founder

Ross alrick who ran the site under the

pseudonym dread pirate Roberts became

aware of individual X's identity and

started threatening the hacker so they'd

return the funds instead though

individual X kept hold of all the stolen

BTC but didn't actually spend any of it

in February 2015 individual X was

apprehended and was made to sign a

consent and agreement to forfeiture

handing over all that precious crypto

while Ross alri himself was given two

life sentences however individual X

wasn't the only person to have wormed

their way into the Silk Road because

another hacker was James Jong now I say

hacker in quotation marks because his

exploit was much less sophisticated

basically he just spammed the withdrawal

button well okay it was a bit more

technical than that but well that's the

gist of it anyway Jong managed to steal

more than 51,000 BTC and then spent

spent the next 10 years living at large

keeping his identity a secret by using

crypto mixers until he was found in

November 20121 how was he caught I hear

you ask well Jong made the mistake of

calling 911 and reporting that someone

had stolen hundreds of thousands of

dollars worth of crypto from his

residence oh the irony this naturally

raised eyebrows but the real mistake was

when Jong later sent some of this stolen

BTC to an exchange with kyc the thing is

once he was caught he knew the game was

up opting to fully cooperate with

investigators he pleaded guilty to one

count of wire fraud handed over all of

his BTC and was sentenced to just one

year and one day in prison which could

have been a lot lot worse so then much

of Uncle Sam's BTC originates in one way

or another from Silk Road but not all of

it in one of crypto's more head

scratching bizarre stories of recent

times 94,000 BTC were seized from Ilia

lonstein and his wife Heather Morgan

Ilia who describes himself on LinkedIn

as a quote technology entrepreneur coder

and investor goes by the nickname Dutch

while his wife Heather goes by the

nickname rasle Khan basically she's a

god- awful Tik Tok rapper moon and stars

we don't own cars to cool for bars oh

yeah like weird from

Mars sorry anyway this charming couple

were arrested in February 2022 for

laundering almost 120,000 BTC that was

stolen in the bitfinex hack of 2016

which Ilia later confessed to being

responsible for and while Heather has

been released back into the wild on bail

but we hope not to pick up her rap

career Ilia is still in jail and

awaiting further sentencing and by the

way if you're enjoying the video so far

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hurry it won't be around forever

now you may at this point be wondering

what happens with all this confiscated

BTC well usually the US government like

many other governments around the world

will manage and secure these Assets in

Cold Storage while investigations are

ongoing and then convert These funds to

Fiat either through an exchange or an

OTC auction in fact between 2014 and

20123 over $360 million of BTC was sold

across 11 different different auctions

funds are then usually directed to law

enforcement budgets or other public

services notable BTC sales include those

of March 2023 when the US sold more than

51,000 BTC acquired from Jong and more

recently in June of this year when the

government moved almost 4,000 BTC to

coinbase despite this though the US

still holds

23,29 BTC at the time of shooting valued

at almost $14 billion so then what

happens next well while it's possible

that this BTC could be used as a hedge

against inflation it's unlikely that's

simply because $14 billion is nothing

compared to the Federal Reserves balance

sheet of over $7.5 trillion so what's

more likely is that the justice

department will wait for more regulatory

Clarity on crypto in general before

making any major moves this could

accelerated thanks to crypto becoming a

talking point of the US presidential

election campaign though Trump's pick

for vice president holds BTC after all

now another known Bitcoin whale is the

Chinese government which at one point

held over 190,000 BTC and it's possible

that it's still sitting on that stack to

this day this BTC was seized from the

plus token scam project for context plus

token was set up in 2018 and PR promised

abnormally High Returns on investment

naturally this lured in a slew of

hopeful investors resulting in an Untold

number of people getting wrecked in 2020

Chinese officials arrested over 100

people involved in plus token including

82 core team members and 27 people

accused of being the masterminds behind

the project ring leaders were jailed for

up to 11 years and all of the illicit

crypto gains were seized by the

authorities who doesn't love a happy

ending

now the confiscated crypto included over

190,000 BTC as well as more than 830,000

eth over 487 million xrp and much more

besides while it's not 100% clear if

China still holds this crypto it's

believed that most if not all of it has

already been exchanged anyway as part of

the seizure ruling the court said quote

the seized digital currencies will be

processed pursuant to laws and the

proceeds and gains will be forfeited to

the National treasury in other words

they weren't exactly planning on hodling

to new all-time highs and not only has

the Chinese government seized

cryptocurrency assets but it's also

confiscated crypto equipment in the past

as well following a Crackdown on crypto

in September 2021 Chinese officials

seized more than 3 and a half thousand

Bitcoin mining rigs in April the

following year notably the Crackdown was

intended to prevent Chinese citizens

from Mining and trading crypto but

ownership is still legal the reason

these measures were implemented was

likely so that China can maintain

authoritarian control especially through

the rollout of its digital Yuan cbdc and

you can learn more about that in one of

our previous videos by using the link in

the description below anyway what's

crazy is that despite the ban on crypto

mining there has been speculation about

Chinese state-owned mining operations

well it turns out this could very well

be more truth than speculation case in

point in October last year the US was

keeping a close eye on bit origin a

Bitcoin mining operation set up near a

Microsoft facility that supported the

Pentagon as it turns out it could be

directly traced back to the Chinese

government not only did this present a

threat to US National Security but it

goes without saying that it rather goes

against China's stance on cryptocurrency

now what China will actually do with any

mined crypto remains unclear but it's

likely that any mined BTC would be sold

off at the first opportunity in much the

same way as the 190,000 BTC seized from

plus token was if China were then to

wait until market conditions were

favorable before offloading any BTC well

this would only discredit the

government's position further now

another government with a massive

Bitcoin stash is none other than the

dear old United Kingdom which holds over

61,000 000 BTC this crypto was seized by

London's Metropolitan Police from a UK

citizen named Gian Wen who was found

guilty of laundering funds from an

investment fraud operation that took

place in China in 2018 Gian Wen was

accused of money laundering on behalf of

her former employee jumin Chan who goes

by the name yadii Jang basically Jung

stole money from thousands of people in

China and then converted these

ill-gotten gains to BTC she then fled

the country and is still on the Run To

This Day meanwhile Gian Wen was caught

after suspicions were raised about her

sudden lifestyle changes for context in

2017 Wen was living in a flat above the

Chinese restaurant that she worked in

then seemingly out of nowhere she

suddenly started renting a six-bedroom

house in North London her rent there was

2,420 per month now either something

wasn't quite right or well we're all in

the wrong business anyway reports

suggest that Wen also used this BTC to

purchase several multi-million pound

houses and a load of expensive jewelry

but the major red flag for the

authorities was when she tried to

purchase a 30 million pound Mansion

using BTC but when asked about how she'd

managed to make so much money she

couldn't give an answer while on trial

when pleaded not guilty saying she was

actually evicted him and she was only

doing as she was told not really the

best excuse if you ask me she was

subsequently found guilty in March 2024

for knowingly helping convert jong's BTC

Into Cash property jewelry and other

luxury items she was sentenced to 6

years and 8 months imprisonment in may

now the victims of this fraud have

appealed to Beijing to get the UK to

return their stolen BTC while it's

estimated that yadii Jang had stolen

funds from just under 130,000 people the

Industrial and Commercial Bank of China

who are assisting with the refund

process has put the number closer to

207,000 victims yikes for now all 61,2

45 BTC have remained dormant the crown

prosecution service said in March that

it had launched a civil recovery

investigation that could result in its

forfeiture but didn't give a clear time

scale the wait for this is even more

daunting when you consider a new UK law

that came into effect from April this

year basically the National Crime agency

or NCA and the police have been

authorized to quote seize freeze and

Destroy cryptocurrency used by criminals

police can transfer these illicit funds

to a wallet under their control and

fraud victims will have to apply to have

it returned of course this isn't the

only time crypto has been seized in the

UK in June 2021 the Metropolitan Police

also confiscated around4 Million worth

of crypto as part of a money laundering

investigation although it isn't clear

what crypto was actually seized at the

time this marked a record for the

largest ever seizure of crypto Assets in

the UK that record was beaten just a few

weeks later though because in the

following month of July police then

seized a further 180 million worth of

crypto related to the same investigation

kind of makes you wonder if they really

managed to get it all this time or if

there's still someone out there with a

secret stash somewhere in any case this

was an insane amount of crypto to be

seized and as a not so fun fact February

2022 also saw the UK government seize

nfts for the first time ever in an

investigation involving tax fraud now

all of these assets were sold off after

the investigations were finalized and

this is what makes it difficult for

those fraud victims we mentioned a

moment ago

that's because the Metropolitan Police

have said that Chinese authorities have

yet to ask for this stolen BTC to be

returned if UK authorities determine

that nobody is entitled to the stolen

assets they'll be sold off in the same

way as in these other cases with half of

the funds going to the police and the

other half going to the home office

let's hope it doesn't come to that and

last on the list of government whales is

Ukraine albeit for very different

reasons as you'll probably know the conf

conflict between Russia and Ukraine has

resulted in many people donating various

cryptocurrencies to help Ukraine with

military and humanitarian funding while

it's unclear how much was raised in

total a coindesk article from July last

year suggested that Ukraine had raised

over $225 Million worth of crypto from

supporters around the world These funds

included $83 million in usdt $79 Million

worth of eth and $41 Million worth of

BTC with plenty of other CP being

donated to just imagine if everyone who

donated had tried to do so through the

banking system but if you thought that

was crazy these donations aren't even

the reason why Ukraine made it onto this

list in April 2021 the Ukrainian

government released a data report that

indicated that public officials owned

over 46,000 BTC between them more

specifically 700,000 officials made

property declarations and of those 650 2

declared that they owned BTC the average

amount between each of these was 71 BTC

each some of these officials were true

Bitcoin Wales several individuals said

they owned over 5,000 BTC one individual

even reported owning 18,000 BTC which is

worth well over $1.1 billion at the time

of shooting truly mindblowing stuff of

course the Ukrainian government has the

same obligations as every other

government around the world and so

naturally this means that crypto has

also been seized from those involved in

illicit activities a recent instance of

this was in December last year when

officials from the National

anti-corruption Bureau of Ukraine seized

around $1.5 Million worth of crypto from

Ukraine's former Head of State

Communications this consisted of around

$1.2 million of usdt and 7 BTC and in

July of 2021 a strange turn of events

unfolded as Ukrainian police raped

needed a supposedly empty Warehouse to

find that it contained nearly 5,000

Computing units mining Bitcoin including

around 3,800 PS4 consoles now I'm not

sure how well a PS4 could mine BTC but

then I guess that's why there were so

many of them I mean at least they would

have stacked better than the oddly

shaped PS5 but well I digress anyway

this mining rig would have lost more

money than it gained had it not been for

the illegal miners manipulation of

electricity meters to steal the power

they needed this stolen electricity was

estimated to be worth between 180 and

$260,000 and its theft had the potential

to cause electrical shortages for an

entire city now all of this begs the

question of how this will affect the

crypto Market in the coming weeks and

months well it goes without saying that

any government holding seized crypto

including those not mentioned in today's

video is likely to sell at some point

depending on the government in question

this could suppress the markets in much

the same way as we've seen with the

recent sales from the German government

that said there's always the chance that

some of these governments could opt for

keeping their crypto Holdings as a

reserve to prop up their local Fiat

currencies if you watched our recent

video about when governments could start

buying BTC you'll know that BTC in

particular holds several key advant ages

that could make it the ideal currency

reserve and of course you can learn more

about that by following the link in the

description below regardless the

slightest whiff of government selling

BTC is likely to cause enough fud in the

markets to cause more damage than the

selling itself that's simply because the

markets cannot stand uncertainty if the

crypto Market was Superman then

uncertainty would be it's Kryptonite and

SPF would probably be Lex Luthor orbe it

he'd need a long overdue haircut for

that gig anywh who this is actually

something that we spoke about in our

recent Mount Go video the fud thing that

is not the weird Superman reference I'll

remind you that the link to that video

is in the description as well of course

while governments continue to hold

massive stacks of SATs the concerns that

they might decide to offload them will

always be hanging over the crypto Market

however if regulations continue to

develop in the same way that we're

currently seeing around the world then

there's always the possibility ability

that governments could decide to buy

more a lot more in fact because their

central banks would have the power to

print enough money to buy up enough BTC

to make it a true Reserve currency but

well let's not get ahead of ourselves

realistically governments would probably

opt to mine BTC rather than buy it it's

even possible that they would try to

seize more BTC from their citizens by

making it illegal to self- custody if

this sounds familiar that's because the

US government did something similar with

gold in the 1930s topic for another time

and another video anyhow there are two

big bullish catalysts on the horizon for

crypto from a governmental perspective

one is that the likely next president of

the United States has come out in

support of the industry and appointed a

VP who seems to be even more

crypto-friendly if Trump returns to the

White House that should in theory pave

the way for positive crypto regulations

in the world's largest economy then

there's the oft forgotten fact that as

of January the 1st 2025 central banks

will be permitted to hold up to 2% of

their reserves in crypto you don't need

to be an economist to know that that

adds up to a potentially awfully large

amount of money and so who knows maybe

governments might be about to start

buying rather than selling so buckle up

things could be a about to get

wild okay that's all for today's video

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to that is in the description below

thank you all so much for watching and

we will see you in the next one until

then this is Guy signing off

[Music]