The US government is set to finalize the Bitcoin holdings audit by April 5.
Strategic Bitcoin Reserve aims for long-term value storage.
Bitcoin’s price fell 10% despite the reserve announcement.
The US government is set to finalize an audit of its Bitcoin holdings this Saturday. This audit will provide the first full accounting of Bitcoin held across federal agencies, following a directive from President Trump. The Treasury Department and other federal agencies are expected to disclose their Bitcoin and other cryptocurrency holdings by April 5.
Audit of Bitcoin Holdings to Clarify Crypto Stockpile
In line with President Trump’s executive order issued on March 6, the government is required to report its digital asset holdings. The order established a Strategic Bitcoin Reserve and a Digital Asset Stockpile, which will store Bitcoin acquired through criminal and civil forfeitures. This move aims to build a long-term reserve, similar to the “digital Fort Knox” concept.
According to a presidential document, Federal agencies are required to submit their Bitcoin holdings to the Treasury Secretary within 30 days of the order. The Treasury is also tasked with establishing two new offices to manage these digital assets. This effort will not only cover Bitcoin but also other assets such as XRP, Solana, and Cardano. The inclusion of these assets in the national digital stockpile will be clarified in the coming days.
Government Bitcoin Holdings and Impact on BTC Price
The US government’s Bitcoin holdings currently stand at 198,012 BTC, valued at around $16 billion. This is a significant portion of the Bitcoin acquired through asset forfeitures over the past decade. However, the government has previously sold a substantial portion of its holdings. Approximately 195,000 BTC were sold, raising $366 million in proceeds.
Even after the establishment of a strategic hold of the currency, the price of Bitcoin has fluctuated. Since the announcement of this action, the rate of Bitcoin has declined by around 10% from more than $92000 to $82000. Among the factors that may have influenced global equities and currencies are the recent trade wars and the possibility of recessions.
Future of Bitcoin in Government Reserves
David Bailey, CEO of BTC Inc, has noted that the results of the audit could help explain recent Bitcoin price movements. The US government’s decision to retain Bitcoin in the Strategic Bitcoin Reserve could influence the digital asset’s future value. The reserve will hold these assets as a long-term store of value without selling any of the Bitcoin.
The audit’s release, together with the public ledger, will shed more light on the government’s position on digital assets. It will also unmask the government’s policy on how it intends to control and embrace digital currencies such as XRP, Solana, and Cardano, among others, in the national stockpile. Read MoreNews, Bitcoin News, Market News, NewsNow, Bitcoin (BTC), Crypto market, cryptocurrency, USA
Cryptonewsland – Your Daily Crypto News
