The status of Bitcoin (BTC) held by the US remains contentious, following recent reports that it had sold off up to 85% of the portfolio. However, new findings suggest otherwise, hinting that the government’s BTC bucket remains intact.

While the development brings clarity, it raises concerns about the possible market impact if the government moves to sell.

Arkham Clarifies US Government Still Holds $24 Billion in Bitcoin

Just over a week ago, reports indicated that the US government had sold 85% of its Bitcoin holdings, comprising seized and/or forfeited assets. The report caused a huge freak-out in crypto and political circles, with Senator Cynthia Lummis citing a strategic blunder.

“I’m alarmed by reports that the US has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins.  If true, this is a total strategic blunder and sets the United States back years in the bitcoin race,” wrote Lummis in a post.

These reports, whose author cited revelations from the US Marshall, have been shut down. According to blockchain analytics firm Arkham Intelligence, the US Government still holds $24 billion in Bitcoin, not $3.47 billion as claimed.

Arkham refutes the claims that the US Government only holds 28,988 BTC, ascribing previous reports to oversight of portfolio diversification.

More specifically, other US Government departments, including the FBI, the DOJ, the DEA, and the US Attorney’s Offices, hold part of the seized Bitcoin.

With this, Arkham clarifies that the US Government currently holds at least 198,000 BTC, worth $23.5 billion at current rates.

“The US Government currently holds at least 198,000 BTC ($23.5B) across multiple addresses held by different government arms – none of this has moved for 4 months,” Arkham articulated.

This makes the US Government’s Bitcoin bucket well heavier than those of the UK Government and Bhutan, which hold $7 billion and $1.3 billion, respectively.  

These findings bring much-needed clarity. However, they also revitalize concerns about the potential market impact if the US government decides to sell its Bitcoin.

Previously, amid reports that the government had sold 85% of its Bitcoin, analysts and investors lauded the strength seen in the BTC price, holding ground despite the sell-off. With new findings, these fears resurface.

Trump’s Crypto Group to Deliver Report—Will It Include Bitcoin Reserve Funding Plan?

Meanwhile, this development comes ahead of Trump’s crypto working group’s report, which features among the top crypto news this week.

Trump’s crypto task force will release its 180-day report on July 30, marking six months since President Donald Trump formed the digital assets task force.

The report could highlight elements such as stablecoin oversight, token classification, and enforcement reforms after the signing of the GENIUS Act.

The working group is expected to tie everything together, likely highlighting the GENIUS and CLARITY Acts, token classification, crypto taxation, and most importantly, feasibility and funding of the strategic Bitcoin reserve.

Experts forecast a pragmatic approach, not involving retail CBDCs amid privacy and trust concerns. They could also promote USD-pegged stablecoins with clearer regulations and focus on international cooperation.

“This isn’t necessarily about the US buying Bitcoin on the open market, but rather exploring the feasibility of establishing a federal crypto reserve, potentially drawing from seized digital assets already in government custody,” Monica Jasuja, chief expansion and innovation officer at Emerging Payments Association Asia, said in a recent interview.

Community preference is that the working group identify and recommend a way for the US government to build a Bitcoin stockpile without using fresh taxpayers’ funds.