The US government has negatively reduced its Bitcoin reserves to 28,988 units, provoking criticism from cryptocurrency supporters and experts.
Overview of the Situation
According to a report from the U.S. Marshals Service, the government has quietly offloaded its Bitcoin stash without any public on-chain evidence. This represents a decrease from the previously assumed reserve of around 200,000 Bitcoin, raising significant concerns within the crypto community.
Senator Lummis' Reaction
Senator Cynthia Lummis, a leading Bitcoin supporter, expressed her concern regarding the reduction of the reserve. In her tweet, she stated:
"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."
This reaction underscores the significance of Bitcoin for the future of the U.S. crypto ecosystem.
Importance of Bitcoin Reserves for the US
The U.S. Bitcoin reserves have been a significant point of contention between Republicans and Democrats. Under President Donald Trump, there were plans to create a strategic Bitcoin reserve that appealed to young voters interested in cryptocurrencies. The potential sale of Bitcoin could place the U.S. behind China, especially amid growing interest from institutional investments.
The reduction of Bitcoin reserves by the U.S. government elicits widespread reactions from politicians and experts alike. The repercussions of the sale may have long-term implications for the country’s position in the crypto economy.
