- Bitcoin’s price dropped 5% after reaching a new all-time high this week, as the wider crypto market lost over $100 billion.
- U.S. Treasury Secretary Scott Bessent stated the U.S. holds $15–$20 billion in Bitcoin, less than previous estimates of $23 billion.
- The U.S. government does not plan to buy more bitcoin soon, using only confiscated assets to build its bitcoin reserve.
- Uncertainty about the government’s bitcoin holdings has caused confusion, with some officials worried the U.S. may have sold over 80% of its previous reserves.
- Plans to expand the U.S. bitcoin reserve depend on progress with new crypto bills in Congress and are expected to use “budget-neutral” methods like asset swaps.
Bitcoin’s price sharply declined by 5% in recent trading, following a record high earlier in the week. The overall cryptocurrency market lost more than $100 billion, with investor sentiment shifting after new comments from U.S. officials on digital asset policy.
Treasury Secretary Scott Bessent announced that the U.S. government controls between $15 billion and $20 billion in bitcoin reserves, a figure lower than previous public estimates of $23 billion. He confirmed that going forward, the U.S. plans to increase its bitcoin reserve only through confiscated cryptocurrency and will not seek additional purchases at this time.
In an interview with Fox Business, Bessent said, “We’re not going to be buying that, but we are going to use confiscated assets and continue to build that up. We’re going to stop selling that.” He estimated the U.S. government’s bitcoin reserve value is “somewhere between $15 and $20 billion.” This amount is below various estimates from Arkham Intelligence, which reported the U.S. holding nearly 200,000 bitcoin.
After the interview, Bessent posted on X that the Treasury is looking at “budget-neutral pathways” to expand the reserve, meaning any new acquisitions may be funded by selling other government assets, such as Gold, instead of new spending. He called previously confiscated bitcoin the foundation of the strategic reserve established by President Donald Trump in a March executive order.
David Sacks, White House official responsible for crypto oversight, said Bessent and Commerce Secretary Howard Lutnick would make the final decision on future bitcoin purchases, using proceeds from existing reserves if necessary. This comes after Trump directed his team earlier this year to create a national bitcoin reserve, following campaign promises outlined at the Bitcoin 2024 conference and in a March order.
Despite efforts to strengthen the crypto reserve, lawmakers say major moves depend on Congressional progress. According to Senator Cynthia Lummis, the White House will look at expanding the bitcoin reserve only after passing the recent Genius Act stablecoin bill and a separate crypto market structure bill.
Recent data from the U.S. Marshals Service, obtained through a Freedom of Information Act (FOIA) request, suggest the U.S. could hold as little as 30,000 bitcoin — sparking concerns from Senator Lummis that most of the reserve has been sold, potentially putting the U.S. behind countries like China, the UK, and Ukraine in bitcoin holdings.
If the lower estimate is accurate, it would place the U.S. fourth globally in government-held bitcoin reserves, after China (194,000 bitcoin), the UK (61,000), and Ukraine (46,000 bitcoin), and just ahead of Bhutan.
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