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How much money did the U.S. government lose during the sharp Bitcoin price drop? Latest data published!
The U.S. government’s strategic Bitcoin reserve, created last year, has lost approximately $5 billion as a result of the sharp downturn in the cryptocurrency market.
Bitcoin’s price fell by about 45% from its peak, reducing the value of the reserve from $18.5 billion to around $13.8 billion.
The reserve was established during the administration of U.S. President Donald Trump, who was particularly known for his crypto-friendly policies. The administration stated that the Bitcoin holdings would continue to be held, arguing that the long-term return potential outweighs short-term price volatility.
However, critics point out that holding highly volatile digital assets with public funds carries significant risks. The sharp drop in Bitcoin’s price has once again reignited debate about including crypto assets on the government balance sheet.
Meanwhile, China has increased pressure on the cryptocurrency market. The People’s Bank of China (PBoC) has banned domestic and foreign-controlled entities from issuing cryptocurrencies without proper authorization.
Authorities reiterated that crypto assets are not legal tender and that commercial activity in this area is considered illegal. The regulation is reportedly aimed at combating risks such as money laundering, fraud, and unauthorized cross-border money transfers. Stablecoins and tokenized assets also fall under the scope of these restrictions.
See also: "MicroStrategy Faces Serious Risks as Bitcoin Falls to $60,000"
