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- A major crypto audit is coming to uncover how many Bitcoin and altcoins the US holds.
- Bitcoin reserve pivot has gained both support and criticism over the past few weeks.
The US Treasury Department and other federal agencies are set to unveil the country’s Bitcoin (BTC) and other digital asset holdings on April 5. This upcoming announcement is in fulfillment of directives from President Donald Trump. The disclosure will reveal the amount of cryptocurrencies owned by the government and its plans regarding digital assets.
Efforts from the US Government to Hold Bitcoin
On March 6, President Trump released an order creating a national strategic Bitcoin Reserve and a digital asset stockpile. The goal is to make Bitcoin and other potential cryptocurrencies a key national asset. As we mentioned in our earlier post, the reserve would only use Bitcoin held by the Treasury, estimated at around $17 billion.
Trump’s executive order instructs federal agencies to submit their cryptocurrency balance sheets within 30 days. Additionally, the order mandates the Treasury Secretary to create two new executive offices to oversee the government’s digital assets stockpile.
The proposed initiative will see the US government hold Bitcoin just like Gold. White House Crypto czar David Sacks said the initiative will capitalize on all Bitcoin acquired through criminal or civil asset forfeiture proceedings. However, in a recent update we covered, Standard Chartered said the US government may sell part of its gold reserves to purchase Bitcoin.
BTC Inc. CEO David Bailey added that the US government’s upcoming announcement will shed light on Bitcoin’s latest price action. He thinks Bitcoin’s price volatility over the past few months is due to the audit results. However, it is important to note that this decline started before the creation of the Bitcoin Reserve.
According to Arkham Intelligence, the US government owns 198,012 Bitcoin, valued at almost $17 billion. The government sold around 50% of the 400,000 BTC mined over the last decade, generating about $366 million.
At press time, Bitcoin price was trading at $82,913, down 1.9% over the previous day. Still, the daily trading volume increased by over 93%. This suggests increased market activity, which could ignite future price rallies.
More Support for the US Strategic Bitcoin Reserve
Intriguingly, support for the US strategic Bitcoin reserve continues to increase despite opposition from several quarters.
Matthew Sigel, Head of Digital Assets Research at VanEck, recently shared a document highlighting multiple ways the US could expand its Bitcoin holdings. Sigel suggests using the Exchange Stabilization Fund (ESF) and Bitcoin bonds.
Global investment firm and asset manager Franklin Templeton has also endorsed the United States’ strategic Bitcoin reserve. The firm acknowledged that a Bitcoin reserve marks a landmark event in the history of Bitcoin.
As featured in our recent coverage, Eric Trump, son of President Donald Trump, hailed Bitcoin as “one of the greatest stores of value.” He added that the asset is “an unbelievable hedge against real estate.”
