U.S government suffers 26% loss on crypto since Trump became president
U.S government suffers 26% loss on crypto since Trump became president
Cryptocurrency Apr 7, 2025 Share
While on the campaign trail, Donald Trump appeared like a dream for cryptocurrency investors, promising that if he is re-elected, the U.S. will become one of the world’s most friendly countries regarding digital assets.
The promises were seemingly taken at face value, as the election victory generated a powerful rally with the discussion of when the government would start accumulating cryptocurrencies, per the strategic reserve promises, coming to great prominence.
The reality of the new administration proved quite different, and instead of the Federal Government increasing its digital assets holdings, the value of what was already owned dropped significantly.
Specifically, the U.S. was recorded as owning $21.15 billion worth of cryptocurrency on January 20, but the number dropped to $15.45 billion by press time on April 7, for a total loss of 26.67%, per the data Finbold retrieved from Arkham Intelligence on the day.
The majority of America’s digital assets are Bitcoin (BTC) seized by the authorities in various law enforcement actions, and the value of said BTC plunged from $20.64 billion on the day of Trump’s inauguration to $15.12 billion.
U.S. cryptocurrency holdings value, three-month chart. Source: Arkham
Why the Government’s crypto portfolio is collapsing in value
Though President Donald Trump has yet to fulfill his promise of establishing a national cryptocurrency reserve and buying additional coins and tokens, he has, for the most part, kept true to his pledge not to sell any of the digital assets already owned.
Indeed, the majority of the government’s losses can be directly linked to the collapsing value of cryptocurrencies in recent weeks. The Liberation Day tariff announcement alone led to a $300 billion market capitalization wipe over the latest weekend.
Bitcoin, America’s single biggest digital asset holding, also suffered a massive plunge in recent trading. With its press time price of $76,365, it is not only at its lowest value since November 2024 but also 18.43% in the red year-to-date (YTD).
BTC YTD price chart. Source: Finbold
Lastly, as BTC stood at $101,762 on inauguration day, it collapsed 24.96% since Trump re-entered the White House.