As of April 2025, governments worldwide hold 463,741 BTC, roughly 2.3% of Bitcoin’s total supply, valued at approximately $42.9 billion, according to CoinGecko’s research.
This figure reflects a decline from 529,591 BTC in July 2024, underscoring the dynamic nature of government involvement in cryptocurrencies.
Meanwhile, a separate CoinGecko report reveals that over 50% of the nearly 7 million cryptocurrencies listed on GeckoTerminal since 2021 have failed, with 3.7 million projects ceasing to trade.
These developments highlight both the strategic role of governments in the crypto space and the volatile, high-risk nature of the broader cryptocurrency market.
Governments acquire Bitcoin through seizures, purchases, mining, and donations, with their strategies varying widely.
The United States remains the largest holder, with 198,012 BTC ($18.3 billion), primarily from seizures like the Silk Road and Bitfinex hacks.
However, recent liquidations and President Trump’s March 2025 executive order to establish a “Digital Fort Knox” signal a shift toward viewing Bitcoin as a strategic reserve asset.
China, despite its crypto trading ban, holds 194,000 BTC ($17.6 billion) from the 2019 PlusToken Ponzi scheme, maintaining secrecy about its plans.
The United Kingdom holds 61,000 BTC ($5.6 billion) from crime-related seizures, debating whether to liquidate or repurpose these assets for public finance.
In contrast, smaller nations like Bhutan and El Salvador are actively accumulating Bitcoin.
Bhutan’s 8,594 BTC ($795.4 million) comes from sustainable hydroelectric-powered mining, showcasing a unique approach to government-led crypto accumulation.
El Salvador, with 6,135 BTC ($567.8 million), continues its bold experiment by purchasing 1 BTC daily, integrating Bitcoin into its national economy under President Nayib Bukele’s leadership.
Ukraine, meanwhile, has liquidated most of its 256 BTC ($21.3 million) in donations to fund military and humanitarian efforts amid ongoing conflict.
Germany’s mid-2024 sale of 46,359 BTC ($3.9 billion) exemplifies the market impact of government liquidations, triggering a 15.7% Bitcoin price drop.
Such sales often stem from budget constraints, legal mandates to convert seized assets into fiat, or strategic market timing to maximize returns.
These actions highlight the delicate balance governments must strike between holding Bitcoin as a long-term asset and addressing immediate fiscal needs.
While Bitcoin remains a focal point for governments, the broader cryptocurrency market is fraught with instability.
CoinGecko’s analysis of GeckoTerminal data shows that 52.7% of the 7 million cryptocurrencies listed since 2021 have failed, with 3.7 million projects no longer trading.
The first quarter of 2025 alone saw 1.8 million failures, accounting for 49.7% of all project collapses between 2021 and 2025.
This surge coincides with market turbulence following Donald Trump’s January 2025 inauguration, which may have exacerbated volatility.
The explosion of new projects, particularly in 2024, fueled this trend.
That year saw 3 million new cryptocurrencies launched, driven by platforms like pump.fun, which simplified token creation and led to a flood of meme coins and speculative projects.
However, 1.4 million projects failed in 2024, representing 37.7% of all failures over the five-year period.
In contrast, failures between 2021 and 2023 were significantly lower, comprising just 12.6% of the total.
The high failure rate underscores the speculative nature of many cryptocurrencies.
Low-effort projects, enabled by easy token creation tools, often lack sustainable use cases or community support, leading to obsolescence.
This contrasts sharply with Bitcoin, which continues to attract government interest due to its established market position and perceived store-of-value properties.
The interplay between government Bitcoin holdings and the high failure rate of other cryptocurrencies reveals a market at a crossroads.
Governments like the U.S. and El Salvador view Bitcoin as a strategic asset, whether for reserve purposes or economic innovation, while others, like Germany, treat it as a liquidatable commodity.
Meanwhile, the collapse of over half of all cryptocurrencies signals a need for greater scrutiny and due diligence among investors and developers.
As the crypto market evolves, governments’ roles as holders, sellers, and regulators will continue to shape its trajectory.
Simultaneously, the high failure rate of speculative crypto tokens highlights the importance of focusing on projects with robust fundamentals.
For now, Bitcoin remains a cornerstone of the crypto space, but the broader market’s volatility serves as a cautionary reminder for those navigating this rapidly changing ecosystem.