On April 5, the US Department of the Treasury and various federal agencies are expected to disclose their holdings of Bitcoin and other digital assets, following an executive order issued by President Donald Trump.
This is in line with Trump’s recent directive to create a Strategic Bitcoin Reserve and Digital Asset Stockpile, aimed at solidifying the country’s position in the digital asset space. The government’s holdings of assets like XRP, Solana, and Cardano—mentioned in the president’s previous statements—are also expected to be clarified.
Trump’s March 6 executive order mandates that all federal agencies report their holdings of Bitcoin and other digital assets to the Treasury Secretary within 30 days. The Treasury Secretary is tasked with overseeing the creation of two new offices to manage these government-held assets. One of these offices will oversee the Strategic Bitcoin Reserve, which will store Bitcoin acquired through criminal or civil forfeiture. This reserve is expected to function as a “digital Fort Knox” for long-term value storage, with no plans to sell off the Bitcoin.
Bitcoin’s Volatility Amidst Government Moves
Despite the announcement of the Strategic Bitcoin Reserve, Bitcoin’s price has remained volatile. Since the reserve’s creation, Bitcoin’s value has dropped by approximately 10%, falling from over $92,000 to around $82,000.
David Bailey, CEO of BTC Inc, has suggested that the upcoming audit could offer insights into the recent fluctuations in Bitcoin’s price. Bailey believes that the findings could answer many of the questions surrounding the asset’s performance, particularly in light of ongoing concerns about trade wars and a potential recession.
The US government’s Bitcoin holdings currently stand at approximately 198,012 BTC, valued at around $16 billion. However, according to White House crypto czar David Sacks, the government once held about 400,000 BTC, most of which was acquired through civil and criminal asset forfeitures over the past decade.
Approximately half of this amount, around 195,000 BTC, has already been sold, generating significant proceeds for the government. Had the government kept the entire 400,000 BTC, its value would now exceed $17 billion.