The US government is poised to liquidate a significant portion of its crypto holdings, aiming to acquire 5,000 BTC. This comes after the establishment of a Strategic Bitcoin Reserve under Donald Trump's administration.
Trump's Strategic Bitcoin Reserve Executive Order
Following Donald Trump’s signing of the Strategic Bitcoin Reserve Executive Order, newly appointed Crypto Czar, David Sacks, clarified the details. Sacks emphasized that the federal government would not sell confiscated Bitcoin but would establish a dedicated reserve. The U.S. Digital Asset Stockpile would include various seized digital assets through civil or criminal forfeiture proceedings. The mention of including XRP, Solana, and Cardano in Trump's statement raised questions, as these assets have not been publicly acknowledged as under US government custody.
US Government’s Current Crypto Holdings
According to on-chain data, the US government currently holds 198,000 BTC, valued at $16.26 billion. Additionally, federal agencies possess a substantial portfolio of digital assets, including: * 60,850 ETH worth $122.96 million; * 122 million USDT; * 750.722 Wrapped Bitcoin valued at $61.69 million; * 40,293 BNB worth $22.34 million; * $13.62 million in BUSD; * $13.40 million in AUSDC.
Potential Liquidation Totals 5,004 BTC
Summing up all liquidatable assets, the US government, by converting its ETH, USDT, BNB, WBTC, and other stablecoins, could secure approximately 5,004.55 BTC. This aligns with Trump's broader strategy to bolster government Bitcoin reserves, suggesting these liquidations may directly contribute to the Strategic Bitcoin Reserve's holdings.
The execution of this strategy could significantly influence market trends, especially with the upcoming 2024 presidential elections and evolving regulatory frameworks in the crypto space. Market participants are keenly observing the federal agencies' moves in anticipation of further actions.
