U.S. Strategic Bitcoin Reserve: A Closer Look at Available BTC
The U.S.government plans to create a Strategic Bitcoin Reserve, but the available bitcoin (BTC) is less than expected. Alex Thorn, a researcher at Galaxy Research, shared this insight on X. He explained that the government holds around 198,000 BTC. Though, 112,000 BTC must be returned to Bitfinex due to a past seizure. This leaves a maximum of 88,000 BTC for the reserve.
thorn clarified that not all seized BTC can be used.Only forfeited coins, not all seized ones, can be repurposed. This reduces the reserveS size significantly. The reserve aims to use seized digital assets without costing taxpayers. But, 112,000 BTC must go back to Bitfinex.
White House AI and Crypto Czar David Sacks stated that the reserve would use seized digital assets. This would avoid extra costs for taxpayers. However, Thorn’s analysis shows that only forfeited BTC can be used, not all seized holdings.This significantly reduces the reserve’s potential size.
Thorn also noted that Bitcoin makes up 97.7% of the government’s digital assets. This percentage rises to 98% when Wrapped Bitcoin (WBTC) is included.
Trump’s decision to establish the reserve has been praised in the crypto community. Coinbase CEO Brian Armstrong called it a “historic moment for Bitcoin and crypto.” He predicted that other G20 nations might follow the U.S.’s lead.
Ryan Rasmussen, head of research at Galaxy Digital, outlined the broader implications.he argued that the reserve removes fears of the U.S. government selling large amounts of Bitcoin. This strengthens the case for institutional adoption.
Rasmussen believes this policy shift fundamentally changes Bitcoin’s narrative. It encourages more nations, wealth managers, financial organizations, and even state governments to buy Bitcoin. The upcoming Mar.7 White House Crypto Summit is expected to shape market sentiment.
