In the Asian market on Thursday (January 11), Bitcoin fluctuated at US$46,600. After the US Securities Regulatory Commission officially approved the spot ETF, the price of the currency once shot up to US$47,687, but then quickly fell back and failed to successfully break through the US$50,000 barrier. U.S. Securities and Exchange Commission Chairman Gary Gensler has stated that he does not recognize Bitcoin, and traders are assessing whether U.S. President Joe Biden's administration, which holds $10 billion worth of tokens, will profit from the rally.

The first negative news: The U.S. Securities and Exchange Commission still does not recognize Bitcoin

The U.S. Securities and Exchange Commission officially approved the Bitcoin spot ETF with a 3-2 vote, but Gensler’s subsequent speech was intriguing. He said that in the past six years, regulatory agencies have rejected more than 20 spot Bitcoin ETP applications, but this time the situation has changed. Changed because the court ruled that the committee needs to re-examine Grayscale’s application to convert its GBTC into a Bitcoin spot ETF.

Second negative news: The Biden administration holds more than 210,000 Bitcoins and the panic of selling on highs still exists

The approval of the Bitcoin spot ETF in the United States is indeed a good thing, but at the same time, investors are still worried that the Biden administration, as a crypto whale, is likely to "ship" on highs, causing the market to fluctuate again.

Cryptocurrency intelligence platform Arkham said that since the U.S. government is one of the largest Bitcoin whales, after the Bitcoin spot ETF passes, the U.S. government will also become the biggest beneficiary due to the increase in currency prices.

“Who will benefit the most from a Bitcoin spot ETF? Probably the U.S. government. The U.S. government is Bitcoin’s largest active address, accounting for over 1% of the total supply and currently worth $10 billion,

According to Arkham analysis data, the U.S. government currently holds more than 213,000 Bitcoins, with a current value of more than 10 billion U.S. dollars, an increase of 4 billion U.S. dollars compared to mid-2023.

It is understood that between November 2020 and 2022, the U.S. government seized more than 200,000 Bitcoins from cybercriminals and darknet markets in three different operations. Currently, these Bitcoins are mainly stored in the U.S. In an encrypted, password-protected, offline hard wallet controlled by the Department of Justice, IRS, or other agency.

How the U.S. government handles these seized Bitcoins has long been a topic of concern, as any selling could affect the price of the currency.