The US government's crypto holdings have declined by $16 billion from their peak, driven entirely by market price movements rather than any government sales.
The holdings reached their highest value in October 2025, when the government's Bitcoin was worth approximately $40.7 billion with Bitcoin trading near $124,000. As Bitcoin's price subsequently declined, the estimated value of the federal holdings fell to a range of $20 billion to $28 billion depending on market conditions.
As of early October 2026, the US government is estimated to hold between 319,000 and 328,000 BTC. At prevailing prices near $82,000 to $83,000, this translates to a valuation of approximately $26 billion to $28 billion.
Earlier Sales Create Larger Regret
White House crypto advisor David Sacks has highlighted what may be a more significant loss. According to Sacks, past government sales of seized Bitcoin generated approximately $366 million. Those same coins would carry an estimated value of $17 billion at current prices, representing an opportunity cost of $16 billion to $17 billion.
Policy Shift Halted Liquidations
A March 2025 executive order established a Strategic Bitcoin Reserve and halted routine sales of forfeited Bitcoin, ending a longstanding practice of liquidating seized assets.
In the first week of October 2026, government-linked wallets moved more than $1 billion in Bitcoin, primarily to custody addresses at Coinbase Prime. The transfers are largely interpreted as administrative rather than indicative of planned market sales.
Debate Over Holding Strategy
The past year has created conflicting narratives for policymakers. Critics of the reserve can point to the $16 billion decline from the October 2025 peak as evidence that holding volatile assets carries substantial risk. Supporters can cite the estimated $16 billion to $17 billion lost through earlier sales at lower prices, suggesting the reserve strategy avoids repeating past mistakes.
