US government’s unrealized losses on strategic Bitcoin (BTC) holdings near $5 billion

A sharp selloff in crypto assets has pushed the US government’s unrealized losses on its strategic Bitcoin (BTC) holdings close to $5 billion, according to reports.

According to Walter Bloomberg, a breaking-news account, on the 6th (local time), Bitcoin has fallen about 45% from its all-time high, reducing the value of the US government’s Bitcoin holdings to roughly $13.8 billion from about $18.5 billion. The resulting unrealized loss is estimated at about $4.7 billion.

The US government operates a strategic Bitcoin holding policy centered on Bitcoin seized during criminal investigations and sanctions enforcement. The assets are managed under a long-term holding approach without being sold, and are classified as part of the digital asset reserve.

Despite the price decline, the Trump administration has maintained its stance that it will keep the Bitcoin holding strategy. Administration officials emphasize that, over the long term, potential upside in Bitcoin’s value can offset short-term volatility.

However, some critics argue that these unrealized losses underscore that the government is exposing taxpayer-funded assets to high-risk, volatile instruments. Concerns are being raised about fiscal stability, given the potential for sharp price swings over short periods.

Markets are watching whether the US government will continue its digital asset holding strategy alongside Bitcoin’s price trajectory. Debate is also continuing over whether strategic Bitcoin holdings can become established as a mainstream asset.