US Government's Cryptocurrency Holdings Decline by $16 Billion

The value of the US government's cryptocurrency holdings has decreased by $16 billion from its peak, which occurred in October 2025 when Bitcoin was valued at approximately $124,000. At that time, the government's Bitcoin holdings were estimated to be worth around $40.7 billion. Since then, as Bitcoin's price has fallen, the estimated value of these holdings has dropped to between $20 billion and $28 billion, depending on market fluctuations.

As of early October 2026, the US government is estimated to hold between 319,000 and 328,000 Bitcoin, translating to a current valuation of approximately $26 billion to $28 billion at prevailing prices of around $82,000 to $83,000. Despite this significant drop in value, the government has not sold any of its holdings, instead opting to maintain its position in the market.

The situation has sparked debate among policymakers. Critics of the government's decision to hold onto its Bitcoin argue that the $16 billion decline illustrates the risks associated with holding volatile assets. Conversely, supporters highlight that previous sales of seized Bitcoin, which generated approximately $366 million, would now be worth an estimated $17 billion, indicating a missed opportunity for the government.

The shift in policy came after a March 2025 executive order that established a Strategic Bitcoin Reserve, halting the routine liquidation of seized Bitcoin. Recent movements of over $1 billion in Bitcoin from government-linked wallets to custody addresses at Coinbase Prime have been interpreted as administrative actions rather than indications of impending sales, further complicating the narrative surrounding the government's cryptocurrency strategy.

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Source: KLEA News