U.S. Marshals’ Bitcoin Stash Shrinks to 28,988 BTC – Where Did the 200K Go?
The U.S. government’s Bitcoin reserves just took a nosedive—from nearly 200,000 BTC to a mere 28,988. What happened to the rest? Did Uncle Sam panic-sell the dip, or is this another case of 'strategic reallocation' (read: bad timing)?
Here’s the breakdown:
The Great Bitcoin Purge
The Marshals once held enough Bitcoin to make a crypto whale blush. Now? Their stash could fit in a mid-sized hedge fund’s cold wallet. Did they spend it on black-budget ops—or just paper-hand their way out of the next bull run?
By the Numbers
200,000 → 28,988. That’s an 85% haircut. Even Terra’s collapse looked less dramatic. Maybe they needed liquidity for the next omnibus bill—or someone finally realized HODLing beats chasing meme stocks.
Cynical Take
Nothing says 'sound fiscal policy' like dumping hard assets at a loss to fund more deficit spending. At least they didn’t swap it for a CBDC pilot—yet.
The United States government ostensibly holds 28,988 Bitcoin (BTC) units from the previously presumed reserves of around 200k coins. According to a report from the U.S. Marshals Service, the government has silently offloaded its Bitcoin stash without leaving an on-chain footprint for the public to consider.
The move has prompted huge criticism from the pro-Bitcoin regulators led by Senator Cynthia Lummis, who has championed the Donald Trump administration to implement a strategic bitcoin reserve. According to Lummis, if the U.S. Marshal has sold the Bitcoin stash, the country has been set back a year in the Bitcoin race.
I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins.
If true, this is a total strategic blunder and sets the United States back years in the bitcoin race. https://t.co/ciYf1uhy0x
Why the Bitcoin Stash Matters for the United States
The United States Bitcoin stash has been a major difference between the Republicans and the Democrats. President Donald Trump gained the majority of young crypto voters’ attention through his Bitcoin stance including plans to introduce a strategic Bitcoin Reserve and clear crypto regulatory frameworks.
The potential Bitcoin sale by the United States will put China ahead until the former’s strategic BTC reserve is implemented. With Bitcoin price on an upward trajectory fueled by heightened demand from institutional investors and nation states, the United States is likely to experience similar losses recorded by the German government.
Notably, the German government sold its Bitcoin stash even before the BTC price surged above $60k, thus losing billions of dollars for not holding the coins for less than a year.
