TLDR
- U.S. Marshals now hold 28,988 BTC, a steep decline from the earlier estimate of 200,000 BTC.
- U.S. Bitcoin holdings have dropped 85%, now worth $3.4 billion as Bitcoin hits new highs.
- Senator Lummis warns U.S. may fall behind in the global Bitcoin race after selling off 80% of reserves.
- Bitcoin’s surge reignites debates on its potential role in addressing U.S. national debt.
A recent report reveals that the U.S. government’s Bitcoin holdings have dropped to just 28,988 BTC, worth about $3.4 billion. This represents an 85% decline from the previously estimated 200,000 BTC.
The data, obtained through a Freedom of Information Act (FOIA) request, has sparked speculation over the reasons behind the large-scale sale of Bitcoin.
With Bitcoin recently reaching an all-time high of $123,000 per coin, questions are being raised about whether the U.S. missed out on significant gains by selling off much of its reserves.
The U.S. Marshals Service’s Bitcoin Auctions and Market Impact
The U.S. Marshals Service manages seized assets, including Bitcoin, and has previously auctioned off large amounts of confiscated digital currency. The recent FOIA report shows that the USMS holds 28,988 BTC, a figure that represents only 15% of the initially estimated Bitcoin reserves.
The significant reduction in holdings points to a series of past auctions where the U.S. government sold large quantities of seized BTC, impacting market dynamics.
Historically, these auctions have led to temporary drops in Bitcoin’s price, as market participants react to the influx of Bitcoin into circulation. However, there are currently no planned Bitcoin auctions, and the remaining holdings suggest that the U.S. may be taking a more cautious approach moving forward.
💥BREAKING:
🇺🇸 US MARSHALS REVEAL THE US GOVERNMENT NOW ONLY HOLDS 28,988 BITCOIN (WORTH $3.4 BILLION), INSTEAD OF THE ESTIMATED 200,000 BTC.
DID THEY SELL? pic.twitter.com/5jvmej22hV
— Crypto Rover (@rovercrc) July 16, 2025
While the U.S. Marshals Service oversees most seized digital assets, it is possible that other agencies, such as the DEA or FBI, also control additional BTC. The uncertainty surrounding the total amount of Bitcoin held by the U.S. government continues to fuel speculation about its strategy.
Senator Lummis Warns of U.S. Losing Ground in Global Bitcoin Race
Senator Cynthia Lummis (R-WY) has expressed concern over the U.S. government’s decision to sell off a significant portion of its BTC holdings. As a vocal supporter of Bitcoin, Lummis warned that the U.S. may be losing its competitive edge in the global cryptocurrency market.
“I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves,” said Lummis. “If this is true, it would push the U.S. behind in the race to dominate the Bitcoin space.”
Lummis’ comments highlight the growing concern among Bitcoin supporters who see the digital asset as a potential tool for economic stability. With Bitcoin’s rising value, many argue that retaining such assets could have positioned the U.S. as a leader in the global crypto race.
Could Bitcoin Help Solve the U.S. National Debt Crisis?
The U.S. national debt, currently estimated at $36.2 trillion, has sparked discussions on the potential use of Bitcoin to offset some of this financial burden. Some experts point to countries like Bulgaria, which holds Bitcoin seized from criminal groups, noting that its value now mirrors a large portion of Bulgaria’s national debt.
Advocates argue that BTC’s deflationary nature and increasing value could provide a strategic asset to the U.S. government. However, critics caution against using such volatile assets as a primary solution to the nation’s debt challenges.
Still, the question remains whether the U.S. made a mistake by liquidating its Bitcoin reserves at a time when the digital asset is experiencing significant growth.
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