$17B Loss for USA: Trump Orders Strategic Bitcoin Reserve, But Is It Too Late?

After much anticipation, President Donald Trump Donald Trump   Donald J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.     President has officially signed an executive order to create a strategic Bitcoin reserve. This marks a historic shift—one that could redefine how the U.S. government handles digital assets. But there’s a catch. While this move signals a commitment to holding Bitcoin long-term, it also highlights a painful truth: the government has already lost billions by selling too soon.

Had the U.S. held onto its Bitcoin stash instead of offloading it over the years, it would be sitting on a fortune today. So, is this new strategy a game-changer, or just damage control? Here’s what you need to know.

A “Digital Fort Knox” for Bitcoin

The new reserve strategy aims to protect Bitcoin holdings for long-term growth, preventing the costly mistakes of past administrations. Under the order, all BTC obtained through civil or criminal forfeitures will be stored in what Trump’s Crypto Czar, David Sacks, calls a “digital Fort Knox.”

In an X post, Sacks stressed the importance of keeping these assets rather than selling them off too soon.

The order also extends to other seized cryptocurrencies and encourages officials to find ways to increase Bitcoin reserves—provided it doesn’t strain the federal budget. This marks a shift in policy, focusing on accumulation rather than liquidation.

The Cost of Selling Too Soon

The U.S. government has long held large Bitcoin reserves but has repeatedly sold them before major price surges. Sacks has criticized past administrations for offloading seized BTC at low prices. He pointed out that over the past decade, nearly 195,000 BTC were sold for just $366 million—Bitcoin that would now be worth over $17 billion as prices approach $100,000.

According to blockchain tracker Lookonchain, the U.S. government’s public wallet currently holds 198,109 BTC, valued at around $16.92 billion. However, over the years, the government has transferred roughly 222,684 BTC to exchanges like Coinbase and other wallets, selling them at an average price of just $14,736 per BTC—a total of $3.28 billion.

If those Bitcoin had been held instead, they would now be worth about $19.42 billion, meaning the government effectively lost around $16.14 billion by selling too early. This highlights the need for a smarter long-term strategy, as outlined in Trump’s new executive order.

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Market Reacts: Bitcoin and Altcoins Drop

Despite the major announcement, Bitcoin’s price fell nearly 5% to $85,000 shortly after the news broke. The drop suggests some disappointment that the reserve will only include already-held tokens, with no immediate plans for new purchases.

Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL) also saw declines of 4%-8%, as the order does not allow for additional government acquisitions of these cryptocurrencies.

The U.S. may finally be playing the long game with Bitcoin, but the question remains—how much has already slipped through its fingers?