Bitcoin News Today: U.S. Government Reduces Bitcoin Holdings by 80%

The U.S. government has significantly reduced its Bitcoin holdings, according to a recent report from the U.S. Marshals Service. The government now holds only 28,988 Bitcoin, down from nearly 200,000 units. This reduction represents an 80% decrease in the government's Bitcoin reserves, with the sales conducted secretly and without leaving an on-chain footprint for public scrutiny.

This revelation has sparked criticism from pro-Bitcoin regulators, notably Senator Cynthia Lummis. Lummis, a vocal advocate for a strategic Bitcoin reserve, expressed alarm at the news, stating that if the report is accurate, the U.S. has made a strategic blunder that sets the country back years in the Bitcoin race. She highlighted that the U.S. has struggled to pass crypto legislations, including plans for a strategic Bitcoin reserve, which could have positioned the country more competitively in the global Bitcoin landscape.

The U.S. government's Bitcoin stash has been a contentious issue between Republicans and Democrats. Donald Trump had gained significant support from young crypto voters due to his pro-Bitcoin stance, which included plans for a strategic Bitcoin reserve and clear crypto regulatory frameworks. The potential sale of the U.S. Bitcoin reserves could give China an advantage until the U.S. implements its own strategic Bitcoin reserve.

With the Bitcoin price on an upward trajectory, driven by increased demand from institutional investors and nation-states, the U.S. could face substantial losses similar to those experienced by the German government. The German government sold its Bitcoin stash before the price surged above $60,000, resulting in billions of dollars in losses. This underscores the potential financial implications of the U.S. government's decision to offload its Bitcoin holdings.