• The value of US government bitcoin holdings has plunged to $20.8 billion from a peak of $40.7 billion in October, according to data from Glassnode.
  • The reserves, built primarily through seizures from criminal investigations, have been hit by a broad crypto market downturn that has seen bitcoin drop below $60,000.
  • Despite the decline, the Trump administration has moved to formalize the holdings as a strategic reserve, raising questions about the risks of holding a volatile asset.

The US government's bitcoin stash, amassed from high-profile seizures like the Silk Road and Bitfinex hack cases, has lost nearly half its dollar value as the crypto bear market deepens. The portfolio, now worth about $20.8 billion, had ballooned to over $40 billion in October when bitcoin traded near $80,000, according to blockchain analytics firm Glassnode. The decline mirrors the broader slump in digital assets, with bitcoin falling more than 30% from its peak.

The holdings are managed across multiple agencies, including the Department of Justice and the IRS, which periodically auction off seized coins. However, under President Trump's March 2025 executive order, the government has shifted toward holding the bitcoin as a strategic reserve asset, a move he championed during his campaign. "We're going to keep every last satoshi," Trump said at a rally in January, vowing to treat the stash as a "national digital fortress."

The policy reversal has drawn criticism from some lawmakers and economists, who argue that locking up billions in a volatile asset exposes taxpayers to unnecessary risk. "The government is essentially gambling with seized property," said one Senate aide familiar with budget oversight. "If bitcoin falls further, we're left holding the bag." Others, however, see the reserve as a hedge against dollar devaluation and a signal of US leadership in digital finance.

Market participants are watching closely to see whether the government will adjust its strategy. "The sale of seized assets can move markets," noted a crypto hedge fund manager. "If they hold, it's a bullish signal. If they dump, it's a weight on prices." For now, the government appears to be holding steady, with no major disposals reported in recent months.

The decline in value also complicates efforts to fund federal programs through asset forfeiture, which in past years sent billions to law enforcement and victim compensation funds. The Justice Department did not respond to requests for comment on its current holdings or plans.

Correction: An earlier version of this article misstated the date of Trump's executive order. It was issued in March 2025, not January.