Cynthia Lummis Raises Alarm Over Reports Of 80% Drop In US Bitcoin Reserves: Analyst Says 'Nothing Conclusive' Until Official Word Comes

Pro-cryptocurrency Senator Cynthia Lummis (R-Wyo.) expressed concern Wednesday over reports suggesting a massive reduction in the Bitcoin (CRYPTO: BTC) held by the U.S.

What Happened: Lummis reacted on X to claims that the government offloaded over 80% of its Bitcoin reserves, leaving just around 29,000 coins.

“If true, this is a total strategic blunder and sets the U.S. back years in the Bitcoin race,” she said.

Lummis referred to a recently released government document obtained via a Freedom of Information Act request filed by independent journalist L0la L33tz. The report showed the U.S. Marshals Service, a Department of Justice agency, holding $28,988.35 BTC, about $3.44 billion at current prices.

Cryptocurrency analyst Sani weighed in, stating that the on-chain footprint doesn’t point toward a Bitcoin sale. They did, however, mention the possibility of custodians facilitating swaps, allowing coins to change hands without leaving an on-chain footprint.

“Nothing is conclusive until we get something official,” Sani added.

According to blockchain analytics firm Arkham, the U.S. government held 198,012 BTC as of this writing, with no movement of coins since December 2024.

See Also: 3 Ways How The Strategic Bitcoin Reserve Could Be Funded

Why It Matters: This development comes in the backdrop of President Donald Trump’s executive order to establish a Strategic Bitcoin Reserve funded by forfeited assets, with a provision to develop budget-neutral strategies for acquiring additional BTC.

Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, had suggested in an interview that the U.S. could capitalize on the gains from its gold holdings to purchase more Bitcoin, citing legislation proposed by Lummis.

Price Action:  At the time of writing, BTC was exchanging hands at $118,364.29, down 0.27% in the last 24 hours, according to data from Benzinga Pro. 

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