In early July 2025, a startling new report based on Freedom of Information Act (FOIA) documents revealed that the US government currently holds just 28,988 BTC—only 15% of the roughly 200,000 BTC it was believed to possess. That’s a sharp decline, suggesting the authorities have quietly disposed of about 85% of their Bitcoin reserves.
🧩 The Numbers Behind the Drop
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Originally, the government was estimated to hold ~200,000 BTC—valued at roughly $24 billion at peak prices.
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However, court‑validated holdings—the only BTC it can legally manage—now total just under 29,000 BTC, equating to approximately $3.47 billion.
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That leaves room for confusion: while law enforcement agencies like the FBI or DEA may hold seized Bitcoin, much of it isn’t formally forfeited and might eventually be returned or claimed by claimants.
Political Fallout and Public Reaction
Senator Cynthia Lummis, a vocal Bitcoin advocate, tweeted on July 16, 2025, expressing concern:
“I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins. If true, this is a total strategic blunder and sets the United States back years in the bitcoin race.” Blog Tiền Ảo
Her words sparked heated debate among lawmakers and crypto enthusiasts, with some suggesting that the Biden administration may have intentionally offloaded Bitcoin without public notice to generate revenue or stabilize crypto markets.
Seized vs. Forfeited: A Legal Line in the Sand
One critical nuance fueling the controversy is the legal distinction between BTC held in custody and BTC formally forfeited through court orders.
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Example: The 94,000 BTC seized during the 2016 Bitfinex hack remains in limbo—not yet declared forfeited—so they aren’t counted as government-controlled assets.
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In essence, law enforcement custody doesn’t equate to governmental ownership. Unless courts finalize ownership, these assets aren’t government “reserves”.
Broader Implications and Strategic Significance
The news may significantly undercut prior assumptions around US crypto policy. For instance:
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Former President Donald Trump had endorsed the idea of a national “Bitcoin Reserve.” These revelations make that goal far less viable, as the government lacks the scale of BTC holdings initially imagined.
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Data from analytics firm Arkham Intelligence highlights that the oft-cited 200,000 BTC figure could be inflated due to internal accounting or transactions that don’t necessarily represent verifiable government ownership.
🔍 What Comes Next?
This bombshell finding raises crucial questions about:
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Transparency: How much Bitcoin has truly been sold? When? And through which mechanisms?
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Policy Messaging: What does this mean for the US’s position in the global digital asset landscape?
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Market Reaction: Will this deep sell‑off dampen confidence in government-held crypto or embolden investors seeking to capitalize on reduced supply?
Conclusion: A Sudden Shift in the Crypto Landscape
The revelation that the US government retains only about 15% of its presumed Bitcoin reserves marks a significant pivot in how we understand public sector influence over crypto markets. While the reasons behind the sell‑off remain unclear—whether strategic, opportunistic, or procedural—the impact is undeniable.
Expect heated media coverage, further inquiries from Congress, and a wave of analysis on how this reshapes Bitcoin’s role in national financial strategy.
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