The cryptocurrency market is navigating a tense period. With the fear and greed index soaring into extreme fear territory, investors are closely watching major on-chain movements—especially those tied to national governments. While the long-anticipated Mt. Gox repayment plan looms large, recent large-scale Bitcoin transfers by the United States and Germany have added pressure, even if current outflows remain within market absorption capacity.
In this climate, national Bitcoin whales have emerged as pivotal players. These government-held reserves—largely seized through law enforcement actions—now total over 518,000 BTC, representing more than 2.4% of Bitcoin’s total supply. Their holdings and potential sell-offs significantly influence market sentiment, especially during volatile phases.
This article explores the top five nations holding substantial Bitcoin reserves, their acquisition sources, and recent activity—all while analyzing implications for market stability and investor confidence.
United States: Largest Holder with Over 213,000 BTC
The U.S. government stands as the world’s largest national holder of Bitcoin. According to Arkham Intelligence data as of June 27, it controls more than 213,000 BTC, valued at over $12.97 billion. These holdings originate from high-profile law enforcement seizures, including:
- The Silk Road darknet marketplace
- The 2016 Bitfinex hack
- The arrest and conviction of hacker James Zhong, who stole 50,000 BTC
Since 2014, the U.S. has already sold at least 195,091 BTC, generating over $366 million in revenue, according to Jameson Lopp, co-founder of Casa.
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Just last week, the U.S. transferred 3,940 BTC (worth ~$240 million) to Coinbase Prime, funds linked to an Indian darknet drug trafficking case. Despite initial market jitters, analysts like Ki Young Ju, CEO of CryptoQuant, downplayed the impact. Coinbase Prime routinely handles 6,000 to 49,000 BTC daily in ETF-related flows, making this transfer manageable within existing liquidity.
Still, any future large-scale sales could test market resilience—especially if multiple nations liquidate simultaneously.
China: 194,000 BTC from PlusToken Case Amid Unverified Sell-Off Rumors
China ranks second in national Bitcoin holdings, with approximately 194,000 BTC valued at **$11.84 billion**, per Bitcoin Treasuries data. These coins were seized during the investigation of the **PlusToken Ponzi scheme**, a massive cryptocurrency scam that defrauded investors of over $3 billion between 2018 and 2019.
Unlike the U.S., China has not officially confirmed any sales of these assets. However, persistent rumors suggest gradual disbursements may be underway. The challenge? Most Chinese government wallet addresses remain unverified or obscured, making on-chain tracking difficult.
Without transparent address labeling, claims of sell-offs remain speculative. Still, any confirmed movement from these dormant wallets could trigger sharp price reactions—given the sheer size of the stash.
For now, these coins sit idle—silent giants in the background of global crypto markets.
United Kingdom: 61,000 BTC from Record-Breaking Money Laundering Case
The UK government holds around 61,000 BTC, worth over $3.72 billion**, making it one of the largest national holders. These assets stem from a landmark case involving a **Chinese national accused of laundering £3.6 billion ($4.3 billion)—one of the biggest money laundering operations in British history.
Despite the scale of the seizure, there has been no movement from these wallets to date. No transfers to exchanges or third parties have been recorded, suggesting the UK authorities are holding rather than liquidating.
This restraint offers a contrast to other nations and may signal long-term strategic holding—or caution amid regulatory uncertainty.
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Given the sensitivity of the case and ongoing legal proceedings, any future disbursement would likely be gradual and coordinated to minimize market disruption.
Germany: Sold 20% of Holdings—8,495 BTC Moved to Exchanges
Germany enters the list with approximately 45,000 BTC remaining in custody (valued at $2.75 billion), down from an initial haul of 50,000 BTC. These coins were seized from Movie2k, a now-defunct piracy website operator—a case that marked Germany’s largest-ever Bitcoin confiscation.
In recent weeks, Germany has become notably active. It has transferred about 8,495 BTC—roughly 20% of its original stash—to major exchanges including Kraken, Bitstamp, Flow Traders, and Coinbase.
While not all of these transfers imply immediate selling (some may be for custody or auction preparation), the pattern suggests Germany is preparing for phased liquidation. The pace so far has been moderate, helping prevent severe price shocks.
Still, with over 45,000 BTC still held, future moves will remain under close watch—particularly if sales accelerate ahead of fiscal deadlines or budget needs.
El Salvador: Strategic Buyer with No Exit Plans
In stark contrast to enforcement-driven holders, El Salvador is a nation accumulating Bitcoin by choice. As of June 27, it holds approximately 5,794 BTC, worth around $350 million**, with unrealized gains exceeding **$50 million.
Under President Nayib Bukele’s leadership, El Salvador became the first country to adopt Bitcoin as legal tender in 2021. It maintained a policy of buying 1 BTC per day, though this was paused in early 2024. Bukele has repeatedly emphasized that the country has no intention to sell its holdings.
Moreover, El Salvador launched its own public mempool explorer to provide full transparency into its national Bitcoin treasury—a move boosting trust and setting a precedent for sovereign crypto adoption.
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This long-term “HODL” strategy positions El Salvador not as a seller but as a symbol of institutional confidence in digital assets.
Other Notable Nations: Russia and North Korea in the Shadows
While not part of the top five holders, Russia and North Korea play significant roles in the global Bitcoin ecosystem:
- Russia controls about 11% of global Bitcoin mining power, ranking third worldwide. Though its government-held reserves are unclear, its mining dominance gives it indirect influence over network security and hash rate distribution.
- North Korea, meanwhile, is a major cyber threat actor. Between 2018 and 2023, it stole over $2 billion in crypto assets**, with **$600 million stolen in 2023 alone, according to Chainalysis. These funds are believed to finance weapons programs and evade sanctions.
Unlike transparent governments, both nations operate in opacity—making their BTC movements harder to track but no less impactful.
Frequently Asked Questions (FAQ)
Q: How do governments acquire so much Bitcoin?
A: Most national Bitcoin holdings come from law enforcement seizures related to criminal activities such as hacking, darknet markets, fraud (e.g., PlusToken), or money laundering operations.
Q: Are government Bitcoin sales bad for the market?
A: Large or sudden sales can increase selling pressure and trigger short-term price drops. However, gradual disbursements—especially into deep liquidity pools—are often absorbed without major disruption.
Q: Can we track all government Bitcoin wallets?
A: Not always. While some countries like the U.S. and Germany have identifiable wallets tracked by analytics firms, others—like China—lack verified addresses, making real-time monitoring difficult.
Q: Why hasn’t El Salvador sold any Bitcoin?
A: As part of its national strategy to promote financial innovation and attract investment, El Salvador views Bitcoin as a long-term reserve asset. President Bukele has publicly ruled out any sales.
Q: Could other countries start buying Bitcoin like El Salvador?
A: Yes. Nations with dollarized economies or high remittance inflows—such as Panama or Paraguay—are often cited as potential candidates for future adoption.
Q: What happens when a country sells seized Bitcoin?
A: Proceeds typically go into government coffers or are used to compensate victims (e.g., in fraud cases). Sales are often conducted via auctions or direct transfers to exchanges.
Final Thoughts
National Bitcoin whales now collectively hold over half a million coins—enough to sway markets with every move. While the U.S. and Germany have begun modest disbursements, others like China remain silent players with unverifiable activity.
Meanwhile, El Salvador stands out as a bullish counterforce—proving that governments can be both transparent and committed holders.
As regulatory frameworks evolve and on-chain transparency improves, understanding these sovereign positions will be key to anticipating macro trends in the crypto economy.
Stay alert. Stay informed. The next major move could come from a government wallet near you.