The U.S. Government Emerges as One of the World’s Largest Bitcoin Holders

The U.S. Government Steps Forward as One of the World’s Top Bitcoin Holders.

According to a recent report by the Wall Street Journal, the U.S. government has unexpectedly become a powerhouse in the world of Bitcoin ownership. Through a series of significant seizures, they have accumulated approximately 200,000 Bitcoins. Based on the current market value, this digital asset stash is estimated to be worth over $5 billion USD.

These Bitcoins were primarily seized from cybercriminals and illegal activities on the darknet. As the digital age has progressed, so too has the world of cybercrime, with bad actors exploiting cryptocurrencies for illicit transactions and money laundering. Therefore, U.S. agencies have increased their efforts to combat such activities, resulting in the accumulation of this substantial digital asset.

The secure storage of such a large amount of cryptocurrency is crucial. According to the Wall Street Journal’s findings, the majority of these Bitcoins are held securely in hardware wallets, which are under the jurisdiction of various government agencies, including the Department of the Treasury and the Internal Revenue Service (IRS).

This development raises questions about the U.S. government’s future plans regarding this stockpile. While the primary purpose behind these seizures is to prevent criminal activities, the management of these digital assets and their potential use remains a matter of deep concern.

BTC Price Analysis: How High Will Bitcoin Go in ‘October’?

After losing the October spirit last week, BTC price action went through a minor correction. Reversing from the $28,000 level, the correction phase led to the formation of a bottom around $26,700, falling below the 200-day EMA.

With such a sharp reversal, the prediction for a long-term price surge stands out in this season. Over the weekend, BTC price regained momentum as the decision on the Bitcoin physically-settled ETF is set to take place tomorrow. With such a bullish sentiment, buyers have regained momentum, leading to a 3.37% growth in the last 48 hours.

The price surge resulted in several bullish engulfing candles, crossing both the 200-day and 50-day EMA. Bitcoin price action is currently trading at $27,743, with a 2.08% growth within the day.

Furthermore, the abrupt reversal in BTC price created a rounded bottom pattern around the $28,000 mark. Therefore, if buyers can confirm dominance above the $28,000 mark, the bullish trend may have a chance to reach above $30,000.

Technical Indicators:

RSI: The RSI line mimics the price reversal and shows an uptrend surpassing the midline and the 14-day SMA line. Moreover, it is approaching the overbought zone. The daily RSI has significantly improved the underlying bullish sentiment with this reversal.

EMA: The 50-day and 200-day EMA maintain an upward trend, and the sudden price reversal brings bullish momentum to the 50-day EMA line. If the uptrend is sustained, these EMAs will provide dynamic support for BTC price.

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Where Is Bitcoin (BTC) Price Heading?

Considering the uptrend beyond the $28,000 mark, $30,000 is the next significant milestone for BTC price. However, with higher sentiment in ‘October’, the recovery of natural fuel could surpass multiple resistance levels. In such a case, the $31,600 mark may be breached, and buyers could aim for $35,000.

On the other hand, the probability of a price reversal is very low. However, if sellers still maintain control around the $28,000 level, and with the SEC’s delay in confirming the physically-settled Bitcoin ETF, a sideways price trend could occur. In such a case, the price trend may once again test the $27,000 mark.