Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Bitcoin Whales, Not Retailers, Are Safe If The United States Government Begins Confiscating Coins: Analyst

Share This Post

Willy Woo, an on-chain analyst, took to X on April 29, raising concerns about the fate of retail Bitcoin investors if the world, especially the United States, plunges into a recession.

Woo, referencing historical events, argues that while large Bitcoin holders, or “whales,” are likely to weather the storm since they control private keys of their coins, retailers or everyday BTC investors might face a different reality.

Who Will Be Safe If The United States Government Began Confiscating Bitcoin?

The analyst compares the current market and the economic downturn of the Great Depression of 1930. During that time, the United States government, Woo warned, seized gold from the public to replenish national reserves. 

Bitcoin price trending sideways on the daily chart | Source: BTCUSDT from Binance, TradingView

Woo now raises the question of whether a similar scenario could unfold with Bitcoin. If so, it could potentially lead to more severe consequences for retail investors.

Whether the government will succeed or not will largely depend on one crucial factor: Bitcoin storage. Sharing data, Woo notes that a staggering 87% of Bitcoin is held in self-custody wallets. For instance, through these wallets, like the Samourai wallet, individuals control their private keys, meaning they can sign transactions, proving that they own coins. 

Meanwhile, roughly 1% are held by spot Bitcoin exchange-traded fund (ETF) issuers like Fidelity. Spot ETF issuers, especially from the United States, offering competitive and low rates, have been rapidly buying BTC from multiple sources, including via exchanges and over-the-counter (OTC) markets, to meet the rising demand from investors, including institutions.

According to Lookonchain data, by April 26, all spot Bitcoin ETF users held over 834,000 BTC less than three months after launching.

Spot BTC ETF flows tracker | Source: Lookonchain via X

On the other hand, 12% of all BTC sits on exchanges like Binance, Kraken, and Coinbase. Most of these coins belong to investors or traders who actively engage. Through centralized exchanges, BTC holders, though not in control of their coin’s private keys, can liquidate for altcoins like Cardano, fiat like USD, or even stablecoins.  

United States Inflation Rising, GDP Data Soft: Recession Incoming?

While most BTC is held via non-custodial wallets, Woo said this route is taken mainly through whales. On the other hand, most retailers fall in the 12% category, keeping their coins via centralized exchanges. This distinction, Woo continues, becomes critical during economic turmoil.

Still, it remains unclear who a whale is, per Woo’s categorization. Bitinfocharts data on April 29 shows that over 65% of BTC is in the hands of those who control less than 0.1 BTC or retailers. 

Bitcoin rich list | Source:Bitinfocharts

Some analysts worry that rising inflationary prices in the United States and falling real GDP, as economic data shows, might plunge the country into a recession. For now, eyes will be on the Federal Reserve (Fed) and Jerome Powell when they set the country’s interest rate this week.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

3.5 Million TRUMP Tokens On The Move—Trump Team Makes A Big Play

Based on the latest analysis of Lookonchain, one wallet associated with the TRUMP token group sent a whopping 35 million TRUMP tokens on May 10, 2025 That stash is valued at roughly

Florida Teens Charged in $4M Las Vegas Crypto Kidnapping

Florida teenagers are facing charges of kidnapping and stealing $4 million in cryptocurrency and non-fungible tokens Teenagers to Be Tried As Adults Three Florida teenagers are reportedly facing

Pi Network Nears $1: How to Buy and Sell Pi Coins

The post Pi Network Nears $1: How to Buy and Sell Pi Coins appeared first on Coinpedia Fintech News Pi Network is making headlines, with it’s price surging more than 25% in the last 24 hours Pi

XRP Bounces Off Major Resistance – How High XRP Can Go If Support Holds

Recent price action in the past 24 hours has seen bullish momentum returning to the crypto market, and XRP is also building on this momentum After struggling to find direction for the first few days

XRP Price Prediction For May 2025 As Bitcoin Price Hits $105000

The post XRP Price Prediction For May 2025 As Bitcoin Price Hits $105000 appeared first on Coinpedia Fintech News Bitcoin recently surged past $104,000, briefly touching $105,000, a level not seen in

Ethereum Surge Above $2,200 Says Bear Market Is Over, Analyst Calls $5,791 ‘Easy’ Target

After weeks of sideways consolidation and uncertainty, Ethereum appears to have flipped a major psychological and technical corner Bullish momentum in the past five days has caused Ethereum’s