tl;dr
Reports claiming the US government sold 85% of its Bitcoin holdings are disputed by Arkham Intelligence, which finds the government still holds about 198,000 BTC valued at $24 billion across multiple departments with no movement in four months. This contradicts earlier concerns and places US holding...
The status of Bitcoin (BTC) holdings by the US government remains contentious following reports claiming it had sold off up to 85% of its portfolio. However, new findings from blockchain analytics firm Arkham Intelligence suggest otherwise, indicating the government’s Bitcoin holdings remain intact, valued at approximately $24 billion.
Initial reports caused significant concern, with figures like Senator Cynthia Lummis calling the alleged sell-off a strategic blunder that could set the US back in the Bitcoin race. These claims, based on disclosures from the US Marshals Service, have since been challenged. Arkham Intelligence clarifies that the US government holds at least 198,000 BTC, spread across multiple departments including the FBI, DOJ, DEA, and US Attorney’s Offices. Furthermore, none of these assets have moved in the past four months, undermining the narrative of a massive sell-off.
The updated estimates place the US government’s Bitcoin stash far above countries like the UK and Bhutan, whose holdings stand at $7 billion and $1.3 billion respectively. While this confirmation brings clarity, it also rekindles anxieties about the potential market impact if the government opts to liquidate any portion of its Bitcoin reserves. Investors previously praised the resilience of BTC prices, even amid rumors of significant government sell-offs, but these new findings bring those concerns back into focus.
Adding to the unfolding developments, the Trump administration’s crypto working group is set to release its 180-day report on July 30. The report is expected to address critical issues such as stablecoin regulation, token classification, enforcement reforms, and potentially, the feasibility and funding of a strategic federal Bitcoin reserve. Experts anticipate a practical approach that may avoid retail central bank digital currencies (CBDCs) due to privacy and trust issues, while possibly supporting USD-pegged stablecoins under clearer regulations and enhanced international cooperation.
As Monica Jasuja of the Emerging Payments Association Asia notes, the discussion might center on establishing a federal crypto reserve sourced primarily from seized digital assets rather than new taxpayer funds. The community hopes the working group will provide recommendations on building a Bitcoin stockpile effectively, balancing regulatory oversight and strategic asset management.