Nearly one year after Trump signed an executive order to create a U.S. strategic Bitcoin reserve, the government’s Bitcoin holdings have declined significantly in value due to market downturns. The reserve—made up of roughly 200,000 BTC seized through criminal/civil forfeitures—has dropped from an estimated ~$18.5 billion to about ~~$13.8 billion, implying a paper loss of around $4.7 billion. �
barrons.com
📉 Market volatility wiped out Trump-era crypto gains
Bitcoin and other major cryptocurrencies have retraced all of the gains they made after Trump’s election. A selloff in early 2026 erased the “Trump rally” where BTC hit record highs. Bitcoin has fallen back below key thresholds (~$65 k–$70 k)—levels not seen since before Trump’s return to office. �
Reuters +1
📊 Administration stance remains long-term
The Trump administration hasn’t sold any of the reserve assets and maintains that the strategy is meant for long-term positioning rather than short-term trading. Officials emphasize focusing on U.S. leadership in digital assets despite the current downturn. �
Bloomberg.com
📌 What This Means for Crypto
💡 Short-term market impact:
Despite earlier optimism tied to pro-crypto policy signals, the crypto market’s heavy pullback has erased most post-election gains, impacting Bitcoin, altcoins, and Trump-affiliated tokens alike. �
Financial Times
💼 Government holdings:
The reserve’s losses are on paper because the government isn’t planning to liquidate assets right now. Long-term proponents argue the strategy protects the holdings and prevents dump pressures in the market, but critics warn about volatility risks tied to holding a speculative asset on the sovereign balance sheet. �
barrons.com
📉 Broader sentiment:
Market skepticism and macro pressures (like uncertainty over Fed rate cuts and risk aversion) have weighed on crypto prices across the board, not just on the Bitcoin reserve narrative. �
Reuters
