Bitcoin News Today: U.S. Marshals Service Bitcoin Holdings Plunge 85% to 28,988

The U.S. Marshals Service has disclosed that it holds only 28,988 bitcoins as of June 2025, a stark contrast to previous estimates that suggested holdings exceeding 200,000 bitcoins. This significant reduction has sparked speculation about potential off-chain transactions and the government's digital asset strategy.

The revelation, obtained through a Freedom of Information Act request, has raised questions about the methods used to sell the bitcoins and the potential impact on the market. Some analysts suggest that the U.S. government may have employed off-chain swaps or other discreet methods to avoid on-chain tracking, which could explain the sudden drop in holdings.

This development comes at a time when the U.S. government has been navigating policy fluctuations and market volatility. In March 2025, President Trump signed an executive order to create a Strategic Bitcoin Reserve (SBR) under Treasury oversight. The SBR is intended to involve large-scale buybacks of bitcoin, potentially stabilizing the market and providing a strategic reserve for the government.

However, the recent revelation has raised concerns about the government's commitment to the SBR. Senator Cynthia Lummis has criticized any substantial divestment, emphasizing the strategic risks of liquidating a large portion of the reserve. The senator's comments highlight the potential risks of policy fluctuations and the need for a clear and consistent approach to managing the government's bitcoin holdings.

The reduction in the U.S. Marshals Service's bitcoin holdings also raises questions about the potential impact on the market. Some analysts believe that the government's sale of bitcoins could have contributed to recent market volatility. Others argue that the sale could have a stabilizing effect, providing a steady supply of bitcoins for investors to purchase.

The revelation about the U.S. Marshals Service's bitcoin holdings comes at a time when the market is already facing significant challenges. The recent volatility in the market has highlighted the need for a clear and consistent approach to managing bitcoin holdings. The government's decision to establish the SBR is a step in the right direction, but the recent revelation about the reduction in the U.S. Marshals Service's bitcoin holdings raises questions about the government's commitment to the SBR and the potential impact on the market.