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A new “federal” whale is detected — who is the biggest crypto market player?

Andrew Zhoao

News editor

Mar 24, 2023 at 07:49

 

Recently we reported about a version of a coordinated attack on crypto by the U.S. authorities in an attempt to cut off the industry from banking services. The result for the authorities was just the opposite. This story isn’t over!

Over the past week, more and more influencers have spoken out in favor of this scenario, adding new details to the story. It’s nice to see mainstream news editions like this one and this other one following us on topic. But we need to go even deeper!

Again on the scary conspiracy

Renowned influencer and Bitcoin advocate Nic Carter claims from his sources that the U.S. government is trying to cut off crypto from the banking sector.

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Carter claimed the Biden administration was reviving the Obama-era Operation Choke Point. Carter pointed to 14 different events in the last 10 weeks that hinted at a coordinated strategy to deprive the crypto industry of its off-ramps in the United States. Everyone can see that already blocking crypto events follow literally every week.

Nic Carter is not alone in mentioning Operation Choke Point; many are writing about it.

And now that the CEO of Binance has also joined this conspiracy polemic, CZ is also sure that the US government and regulators have triggered a global financial crisis after a failed attempt to destroy cryptocurrency.

The Shadow State Whale

For all the rejection of crypto, the U.S. government itself has a total BTC stockpile of 205,515 BTC (~$5.6 billion at the time of writing) as of March 1, 2023 -— that’s more than 1% of the coin’s issuance. This was reported by analysts at Dune, who called the U.S. government “one of the largest bitcoin kits” in the market. And best of all, that stockpile is growing.

Dune itself stresses that this is an underestimate based only on publicly available information.

Ordinary citizens are being turned off conversion 

One Coinbase user noticed a sad trend. He opened his account on the exchange in 2013, in those days the limit of fiat transactions through ACH was about $50K per day. In February 2023 it became $10K, and now the exchange has notified everyone that the limit has dropped to $1K per day. And what is more, now Coinbase is even discussing the possibility of relocating from the U.S. to another country.

As we can see from the latest events, the US government is making systematic efforts to block the conversion of crypto into fiat, destroying entire banks in the process. At the same time, they launched an attack on staking services, and after Kraken, similar problems came to Coinbase (the company has already been notified about the upcoming trial).

Short Conclusion

Amid this increasing pressure on private crypto investors, the U.S. itself is quietly accumulating crypto reserves. From observation of what is happening, a bold assumption emerges: it is not about a complete ban and destruction of crypto as an alternative asset, but rather about monopolization of access to crypto in favor of the state. Thus, Duna analysts are surprised to note that, in fact, the American state has become one of the big whales in the market, implementing HODL policy on a state scale.

Another Twitter influencer, recalling the confiscation of gold from U.S. citizens during the 1933 crisis, when gold became a state asset, makes ominous predictions about crypto by analogy:

“There is an absolute non-zero chance that the US Federal government comes for personal crypto asset seizure at some point for American citizens if things continue declining further.”

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