Amount of BTC much lower than expected
The U.S. Treasury Secretary, Scott Bessent, revealed that the strategic reserve of Bitcoin, consisting of confiscated cryptocurrencies, is valued between $15 and $20 billion, well below the nearly $23 billion estimated by the market. This disparity raised concerns about the transparency of government reserves.
No additional purchases planned... yet
Initially, Bessent stated that the government has no plans to buy more BTC, which cooled market optimism. However, he later clarified that they are exploring 'budget-neutral' options (without additional cost to taxpayers) for future acquisitions. This includes potential sources such as selling gold certificates or tariff revenues, although a specific mechanism has yet to be defined.
Sale of confiscated BTC suspended
Although no additional Bitcoin will be purchased in the short term, the government announced it would stop selling the BTC it already holds, which may act as a bearish brake on the available supply in the market.
What did it mean for the market?
Bitcoin price drop: Following the announcement, BTC fell more than 5%, retreating from historical highs (~$124,000) to around $119,000.
Liquidity and volatility rising: Nearly $800 million in positions were liquidated, reflecting the immediate impact of the news.
Pullback followed by stabilization: After the initial shake-up, part of the market repositioned optimism upon seeing the Treasury's willingness to seek constructive paths in the future.
Context
This strategy is part of the government's plan to institutionalize Bitcoin, similar to strategic reserves like oil or gold. The reserve was established by an executive order in March 2025, funded with crypto obtained from confiscations. A digital reserve of non-BTC assets is also contemplated.
The revelation of lower Bitcoin holdings than estimated and the pause on new purchases generated uncertainty and declines in the crypto market. However, the openness to explore additional purchase mechanisms without extra cost keeps alive the potential for future recovery, especially if a clear and viable strategy is realized.
