Holdimg $17.8B, US Government Now One of the Largest Crypto Whales
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Key Takeaways: The U.S. government now holds $17.8 billion in crypto, making it one of the largest crypto holders in the world. Institutional accumulation is accelerating, signaling a shift toward state-level and corporate digital-asset strategies. Market analysts warn that government-controlled crypto wallets could influence liquidity, price stability, and future regulatory direction. According to Arkham Intelligence, the U.S. government contains estimated digital assets worth $17.8 billion. The increasing popularity of government-owned wallets changes the way investors perceive risk, liquidity, and long-term adoption patterns as institutions, hedge funds, and key asset managers start to accumulate Bitcoin and altcoin in large amounts. Government-Controlled Crypto Reserves and Market Influence The U.S. has been seizing cryptocurrencies for more than a decade. With holdings reaching $17.8B, the U.S. Treasury effectively controls more crypto than most publicly traded companies and even some mid-size crypto exchanges. This stockpile places the U.S. in a unique position. Unlike private institutions, the government does not trade for profit. Instead, assets are liquidated according to legal and administrative procedures, which often occur in large, irregular batches. These events draw attention because they can temporarily shake market liquidity. While federal agencies have no mandate to speculate or actively move markets, their large-scale transfers to exchanges or auction partners are closely monitored by on-chain analysts. Any sudden movement from known government wallets frequently triggers market reactions, particularly in Bitcoin, where liquidity events above $100 million can influence short-term volatility. Other commentators note that the government holdings are indirectly one of the reasons to argue that crypto has become an inevitable asset category. Ten years ago, it was impossible to consider a state with billions of digital tokens. Today, it emphasizes the growing importance of crypto in the law enforcement system, asset recovery, and financial systems. Read More: US$ 101 Million Drop-Buy: El Salvador Snaps…