Bitcoin Holdings of U.S. Government Decrease by $2B Following Tariff Announcement

Summary

• US Government Bitcoin Value Drops: The value of Bitcoin held by the U.S. government decreased by $2 billion, a 12% drop, following Trump‘s “Liberation Day” tariff announcement on April 2nd.

• Bitcoin Price Decline: This loss in value is attributed to a decline in Bitcoin’s price from $87,106 to $76,830.22 between April 2nd and April 8th, impacting the valuation of the government’s 198,012 BTC holdings.

• Strategic Bitcoin Reserve & Broader Crypto Market: The US government accumulated Bitcoin through seizures and is establishing a strategic reserve as per a recent executive order, while the broader cryptocurrency market has also seen a downturn, losing about 9% of its market cap since April 2nd.

Recent economic policy announcements appear to have had an immediate impact on the U.S. government’s substantial Bitcoin portfolio.

Government’s Bitcoin Holdings Quantified

Since April 2nd, a date dubbed “Liberation Day” by former President Trump when he unveiled new “reciprocal tariffs” on a global scale, the value of the government’s Bitcoin reserves has diminished by an estimated $2 billion.

12% Devaluation Since Tariff Announcement

This represents a significant contraction of approximately 12% in the dollar value of these digital assets.

Data from Arkham Intelligence, a platform specializing in on-chain analytics, reveals that the U.S. federal government possesses a considerable 198,012 Bitcoin.

On April 2nd, the valuation of this stockpile reached $17.24 billion.

The subsequent days witnessed a notable downturn in Bitcoin’s market price.

Between April 2nd and April 8th, the price of the leading cryptocurrency experienced a decline from $87,106 to $76,830.22.

This fluctuation in value directly translated to a decrease in the government’s Bitcoin holdings, bringing their worth down to $15.21 billion.

Consequently, in the brief period since the “Liberation Day” tariff announcements, the U.S. government’s Bitcoin assets have undergone a nearly 12% devaluation, reflecting the volatile nature of cryptocurrency markets and their sensitivity to broader economic news.

It is important to note that the U.S. government’s Bitcoin accumulation is not a result of direct purchases but stems from seizures made by federal agencies during civil and criminal legal proceedings.

On March 6th, preceding the recent tariff announcement, former President Trump signed an executive order establishing a strategic Bitcoin reserve, explicitly intended to capitalize on these seized digital assets.

Concurrently, David Sacks, characterized as Trump’s “crypto czar,” publicly asserted that the previous administration’s Bitcoin sales had resulted in a $17 billion loss for the government.

The aforementioned executive order also included a directive for federal agencies to disclose their cryptocurrency holdings to Treasury Secretary Scott Bessent within a 30-day timeframe.

While mandating internal reporting, the order did not stipulate any public dissemination of this information.

Beyond Bitcoin, the U.S. government’s cryptocurrency portfolio includes assets such as $122 million in USDT (Tether) and $88 million in Ethereum, among other digital currencies.

As of April 8th, the aggregate value of the government’s total cryptocurrency holdings is estimated to be $15.6 billion.

The broader cryptocurrency market has also experienced downward pressure.

Since April 2nd, the crypto sphere’s total market capitalization has decreased by approximately 9%, currently hovering around $2.5 trillion at the time of this report.

According to pricing data from the Kraken exchange, Bitcoin was trading at $76,830.22 as of the latest update.

This figure underscores the recent price correction impacting the value of digital assets globally and, consequently, the U.S. government’s holdings.

Also Read: Binance CEO Suggests Trump’s Tariff Policy May Boost Cryptocurrency Interest

Binance CEO Richard Teng suggests that US tariffs imposed by President Trump could potentially boost interest in cryptocurrencies like Bitcoin as a “non-sovereign store of value” amid economic uncertainty. Despite initial market volatility and a significant decline in Bitcoin’s value, Teng believes the tariffs could accelerate interest in the…[Read More]

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