The US Department of the Treasury, along with other federal agencies, are set to reveal their Bitcoin and other cryptocurrency holdings on April 5, following a directive from President Trump. It is anticipated that this disclosure will also clarify whether digital assets such as XRP, Solana, and Cardano, which were previously mentioned by the president, are included in the national digital asset stockpile.
On March 6, the president issued an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile. As per a presidential document published on March 11, all federal agencies are required to report their Bitcoin and other digital asset holdings to the Treasury Secretary within 30 days of the order. Along with this, the Treasury Secretary is also mandated to set up two offices to manage government-held digital assets.
Designed as a digital Fort Knox for long-term value storage, the Strategic Bitcoin Reserve will hold Bitcoin that has been acquired through criminal or civil forfeiture, with a clear directive to not sell the Bitcoin.
With the anticipation of the audit results, David Bailey, CEO of BTC Inc, suggests that this could provide insights into the recent price fluctuations of Bitcoin. Despite the establishment of a strategic Bitcoin reserve, Bitcoin’s volatility remains high and its price continues to decline. The price drop, from over $92,000 to $82,000, a fall of around 10%, has been largely attributed to trade war and recession concerns.
Bailey stated, “Depending on what we learn, might answer many of the open questions about the recent price action.”
According to data from Arkham Intelligence, the US government currently holds approximately 198,012 BTC, which is worth around $16 billion. David Sacks, the White House’s crypto czar, disclosed that the government had previously held around 400,000 Bitcoin through civil and criminal asset forfeitures over the past decade.
However, about half of this amount, roughly 195,000 BTC, was sold, generating proceeds of $366 million. If the government had retained all 400,000 BTC, its current value would exceed $17 billion.
The upcoming disclosure of the federal agencies’ crypto holdings and the establishment of a strategic Bitcoin reserve mark significant steps in the government’s approach to digital assets. Whether these moves will provide stability to the volatile crypto market remains to be seen.
