U.S. Crypto Reserves Shrink by 26%: No More "Strategy" of Buying, Only Shrinking "Reserves" Remaining

Author: Cointelegraph

Translated by: AididiaoJP, Foresight News

Original Title: The US Still Has No Intention to Advance Bitcoin Strategic Reserve Plan

One year ago, U.S. President Donald Trump signed an executive order to establish a U.S. strategic cryptocurrency reserve. Now, a year later, the reserve’s value has shrunk by billions of dollars.

At the start of his administration, Trump set up a special task force to study how the government could better implement and regulate cryptocurrencies, including Bitcoin and the cryptocurrency reserve plan.

Over the past year, the Trump administration introduced several macroeconomic and policy adjustments. Among them, Washington’s friendly regulatory policies favored cryptocurrencies, but punitive tariffs and escalating geopolitical tensions had negative impacts.

Currently, the number of tokens in the U.S. cryptocurrency reserve has remained essentially unchanged since its establishment.

Trump’s Crypto Reserve Remains Basically Unchanged

On March 6, Trump issued an executive order establishing the “Strategic Bitcoin Reserve” and the “U.S. Digital Asset Reserve.” The Bitcoin reserve contains only Bitcoin, while the digital asset reserve includes various altcoins. Before the executive order, Trump had indicated that the reserves would include XRP, Solana, and Cardano.

Source: Donald Trump

These two reserves “will not acquire additional assets through any means other than confiscation procedures.”

The executive order essentially consolidates previously seized assets scattered across multiple federal regulatory and law enforcement agencies. It states that centralizing ownership, control, and management of these assets within the federal government will ensure proper oversight, accurate tracking, and unified management of government-held cryptocurrencies.

The government has not disclosed specific details about the Bitcoin reserve and digital asset reserve, but blockchain analytics firm Arkham Research has identified several blockchain wallets associated with the U.S. government.

As of press time, the total value of cryptocurrencies held by the U.S. government is approximately $22.39 billion, with Bitcoin alone accounting for about $22 billion. Other major holdings include stablecoin USDC, Ether, Wrapped Bitcoin (WBTC), and BNB.

(Data collected on March 4)

It is unclear how much of these assets are part of the official reserve, whether they have been transferred, or how they have been transferred. However, the dollar value of the reserve has declined significantly. Arkham data shows that when Trump signed the executive order, the total value of crypto assets held by the U.S. exceeded $30 billion. As of press time, this figure has dropped to $22 billion, a 26% decrease.

Since March 2025, the value of the U.S. crypto portfolio has dropped sharply. Source: Arkham

The White House does not seem to be shaken by this. Deputy Press Secretary Kush Desai said regarding recent price declines: “In a free market, the government does not set prices, and market fluctuations will not change the Trump administration’s determination to maintain U.S. dominance in cryptocurrencies and other cutting-edge technologies.”

Bitcoin Holdings Unchanged, No Purchase Plans Yet

Despite strong supporters hoping the U.S. government would start buying Bitcoin, the amount of Bitcoin held by the government has not changed. Since the executive order was signed, the U.S. government has held about 328,272 BTC.

Bitcoin holdings have remained stable since the reserve was established. Source: Arkham

Ether is the second-largest crypto asset held by the U.S. government. Its quantity decreased after the executive order, possibly due to exchanges or transfers. However, after April 2025, Ether holdings have remained relatively stable.

Changes in Ether holdings. Source: Arkham

Tether’s USDT is the largest stablecoin held by the U.S. government. In May 2025, holdings surged by over 200 million USDT, then fell back to levels before March 2026.

USDT holdings changes. Source: Arkham

The trading patterns are not very clear. As mentioned, the government has not publicly disclosed specific transaction volumes.

The new crypto reserve strategy does not entirely rule out the possibility of the government purchasing Bitcoin, but any such purchases must be made in a way that “does not impact the budget.” AI and crypto affairs official David Sachs said last year: “No deficit increase, no debt increase, no taxes on the American people.”

“It won’t cost taxpayers a dime. But if Treasury secretaries can find ways to accumulate more Bitcoin without increasing the tax burden, they can do so.”

A year has passed, and it remains unclear whether the government has formulated such a strategy or how it would implement it.

Blockworks co-founder Jason Yanowitz told BBC last year that a crypto reserve containing multiple assets could negatively impact the market. “Without a clear framework, randomly choosing assets can distort the market and erode public trust,” he said. “Ensuring transparency through independent audits and public reporting is crucial for fostering innovation and avoiding favoritism.”

Following the success of software companies transforming into Bitcoin investment tools, such as Strategy, the idea of establishing Bitcoin reserves at both state and corporate levels has gained attention. The narrative of Bitcoin as “digital gold” makes holding this asset attractive for government budgets.

According to data from BitcoinTreasuries.net, currently, 10 countries—including the U.S., China, Ukraine, El Salvador, the UK, and North Korea—hold Bitcoin.

At the corporate level, analysts expect industry consolidation as the bear market continues. Woyciech Kaczynski, Chief Strategy Officer of crypto infrastructure and treasury company BTCS, previously told Cointelegraph that companies with Bitcoin treasury values below their net assets might be acquired by operating firms.

Bitcoin reserves remain a new concept and have not yet experienced a full crypto winter test.