- Current data shows that countries hold over 2% of BTC in circulation.
- UAE holdings, if true, will double the holdings.
Recent reports claim that the United Arab Emirates (UAE) holds over $40 billion worth of Bitcoin. This potentially makes it one of the largest institutional cryptocurrency holders.
While the claim remains unverified, the speculation raises questions about the potential market impact if such a vast holding were to be sold.
Contextualizing the UAE’s alleged Bitcoin holdings
To put the claim into perspective, official data on countries holding Bitcoin shows the United States leading the pack with 207,189 BTC, valued at nearly $19.76 billion.
China follows closely with 194,000 BTC worth approximately $18.5 billion, while the UK holds 61,000 BTC, or $5.82 billion.
Source: Bitbo
If the UAE indeed holds $40 billion in Bitcoin, it would surpass the combined holdings of the U.S. and China and signal a major shift in how countries perceive and utilize cryptocurrency.
However, the absence of clear data or official confirmation leaves room for speculation.
The implications of a large-scale Bitcoin sell-off
If these holdings are real, the possibility of a sell-off raises concerns about market stability. Selling approximately 420,000 BTC at current prices would represent a substantial influx of liquidity into the market, likely triggering significant price volatility.
This could undermine confidence among institutional and retail investors who see Bitcoin as a hedge against inflation and a store of value.
Moreover, Bitcoin’s circulating supply is finite, capped at 21 million. Liquidation of this scale would account for nearly 2% of all Bitcoin e
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Author: Adewale Olarinde
