Bitcoin News Today: U.S. Sells 195,092 Bitcoin Missing $18.5 to $21 Billion in Gains

The U.S. government reportedly sold 195,092 Bitcoin between 2014 and 2023, missing out on an estimated $18.5 to $21 billion in potential gains. At the current price of $114,000 per Bitcoin, these holdings would be valued at approximately $22.2 to $22.6 billion, representing a significant unrealized loss compared to the $366.5 million to $422.2 million actually realized through sales [1]. The U.S. Marshals Service, under the Department of Justice, executed these sales primarily through auctions and over-the-counter transactions, citing legal protocols for asset forfeiture rather than a discretionary investment strategy [1].

The timing and frequency of these sales have drawn scrutiny, particularly as Bitcoin has surged in value over the past decade. The government’s decision to liquidate its holdings has been criticized as a missed opportunity to generate substantial returns for taxpayers. Senator Cynthia Lummis highlighted the oversight, stating that the loss of $18.5 billion represents a near 98% decline in potential value [1]. While the sales had only a marginal impact on Bitcoin’s spot price due to the asset’s strong market absorption, the broader implications for public finance remain a topic of debate [1].

The U.S. liquidation policy has also been contrasted with growing institutional interest in Bitcoin. Companies such as MicroStrategy have made large-scale Bitcoin purchases as part of corporate treasury strategies, accumulating billions in the digital asset. Analysts, too, have begun forecasting more bullish price targets for Bitcoin, with some projecting a value of $21 million per Bitcoin in 21 years under a 28% annualized growth assumption [5]. These developments underscore the increasing role of digital assets in global financial markets.

The U.S. government’s approach to Bitcoin has remained largely conventional, rooted in asset disposal protocols rather than forward-looking investment strategies. While no regulatory reforms have been announced to address this, observers suggest that the incident could spark broader discussions on how governments manage digital assets. The potential for institutional-grade crypto investment strategies and improved fiscal management practices is increasingly being emphasized by market participants.

The sale of the Bitcoin and the subsequent loss of value highlight the challenges of balancing regulatory compliance with long-term financial strategy. As the crypto market continues to evolve, the U.S. may face pressure to revisit its approach to managing digital assets, particularly in light of the growing mainstream adoption and financial inclusion seen in recent developments such as the inclusion of cryptocurrencies in retirement plans [3].

[1] https://crypto.news/us-sold-over-195000-btc-between-2014-and-2023-missing-over-21-billion-in-potential-gains/

[3] https://m.economictimes.com/news/international/us/bitcoin-surges-as-trump-backs-crypto-in-401k-plans/articleshow/123169592.cms

[5] https://finance.yahoo.com/news/bitcoin-still-millionaire-maker-094500933.html