Bitcoin Price Volatility Expected as US Marshals Hold 28,988 Bitcoins Bitcoin Developers Propose Quantum-Resistant Upgrade, Risking $593 Billion Freeze

Bitcoin's latest price was $, in the last 24 hours. The US Marshals Service, part of the US Department of Justice, officially announced that it currently holds 28,988 Bitcoins following a FOIA request by an independent journalist. This disclosure adjusts previous assumptions of 200,000 Bitcoin held by the government. Historically, the USMS has sold seized Bitcoins in auctions, impacting market conditions. The current Bitcoin assets remain unsold, indicating strategic retention. The broader implications include a potential focus on digital assets in future national policies. This revelation affects the perception of US government holdings and could influence market speculation regarding Bitcoin's price stability. While past auctions impacted the market briefly, retained holdings suggest a different approach. Financial implications could include market stability if liquidation is avoided. Technological outcomes might see increased tracking efforts by third-party analysts. Past events, like Silk Road auctions, provide insight into potential market volatility, affecting investor anticipation. The broader market observes these holdings to gauge future Bitcoin value trends.

Bitcoin developers have proposed a groundbreaking plan to phase out legacy cryptographic methods vulnerable to quantum computing attacks, aiming to safeguard the network’s future. This initiative could potentially freeze $593 billion in Bitcoin held in wallets that do not upgrade to quantum-resistant addresses by 2030, including those linked to Satoshi Nakamoto. On July 14, a team of prominent Bitcoin contributors, including Jameson Lopp, introduced the “Post Quantum Migration and Legacy Signature Sunset” proposal. This comprehensive plan aims to transition Bitcoin’s cryptographic infrastructure away from vulnerable schemes such as ECDSA and Schnorr, which quantum computers could potentially break within the next decade. The proposal emphasizes a phased approach to mitigate risks, starting with prohibiting new transactions to legacy addresses and culminating in the invalidation of all legacy cryptographic transactions at a predetermined block height. This approach is designed to encourage timely migration to quantum-resistant Pay-to-Quantum-Resistant-Hash (P2QRH) addresses, thereby securing the network against emerging quantum threats. The migration plan is structured into three distinct phases. Phase A initiates the process by disallowing new transactions to legacy addresses, nudging users toward quantum-secure alternatives. Phase B enforces a hard cutoff, rendering all legacy cryptographic transactions invalid after a specific block height, effectively freezing funds in non-upgraded wallets. Phase C, still under development, proposes a recovery mechanism leveraging zero-knowledge proofs to authenticate wallet ownership for users who miss the migration deadline. This phased approach balances security imperatives with user flexibility, aiming to minimize disruption while ensuring the network’s long-term resilience. The proposal highlights that approximately 4.9 million BTC, remain exposed due to legacy address formats such as Pay-to-Public-Key (P2PK).