"U.S. government's Bitcoin holdings post $5 billion in unrealized book losses amid price correction"

The fair value of Bitcoin (BTC) held by the U.S. government has reportedly recorded unrealized book losses of about $5 billion following a recent price correction.

According to EtherNews, a crypto-focused media outlet, the valuation of the U.S. government's Bitcoin holdings currently stands at about $13.8 billion. That is roughly 45% lower than the $18.5 billion estimated at the peak.

The valuation loss occurred alongside the sharp market-wide correction in crypto earlier this year. During the period, Bitcoin at one point fell to around $60,000, marking its lowest level since late 2024. The U.S. government has not traded the asset and has maintained its holdings, meaning the loss is entirely the result of mark-to-market valuation changes.

The market is focusing on the fact that this structure resembles the financial strategies of companies holding large amounts of Bitcoin. The view is that if Bitcoin is added as a long-term holding rather than for trading purposes, its price volatility is inevitably reflected directly in financial statements.

The U.S. government incorporated Bitcoin into its national strategic reserve assets last year. At the time, it defined Bitcoin not as a short-term investment asset but as a long-term store of value, stating it would not respond to short-term price fluctuations. That stance is reportedly unchanged even after the latest correction.

Still, as Bitcoin's volatility has begun to be reflected directly in national fiscal indicators, some are also raising the possibility that it could become a political and fiscal burden going forward.