US Delay On Bitcoin Audit Is A Bullish Red Flag, | Crypto News
Jack Mallers, founder and CEO of Strike, ignited recent debate over Washington’s still-undisclosed Bitcoin stability on Wednesday night time, arguing that the US authorities is withholding the numbers because its place is “too small to lead” the digital-asset economic system.
“The US won’t disclose their BTC holdings. Why? Because they realized they don’t own enough,” Mallers posted on X, including that the Strategic Bitcoin Reserve (SBR) race is “far from over” and “I expect this to heat up.”
US Bitcoin Silence Hints At Bigger Problem
In a video hooked up to the post, the 30-year-old entrepreneur expanded on the purpose. He praised the administration’s determination in March to create an SBR but said the follow-through has fallen short: “The US government has kind of let us down in not giving us the full audit of how much Bitcoin the US government owns. … Clearly that information is sensitive or else they would disclose it. … I think that the US government is ashamed of its Bitcoin position.”
President Donald Trump’s Executive Order 14233 on 6 March formally established the Strategic Bitcoin Reserve alongside a broader Digital Asset Stockpile, framing Bitcoin as a “unique store of value in the global financial system.” A follow-up White House fact sheet pressured the objective of “positioning the United States as a leader among nations in government digital-asset strategy.”
Yet when the administration unveiled its 163-page digital-assets strategy on 30 July, the doc provided only a fleeting reference to the SBR and no arduous figures. Robert “Bo” Hines—govt director of the President’s Council of Advisers on Digital Assets—famous, “I can’t discuss that right now … There are several reasons we’re not disclosing that at this time.”
Over the past months, Hines’ tone was not apologetic. “We want as much Bitcoin as we can possibly get, and we’re going to continue to work on that,” he said in a separate interview, describing Bitcoin as “digital gold”.
For years analysts believed the US authorities managed properly over 200,000 BTC thanks to Silk Road, Bitfinex-hack and other forfeitures. But a Freedom of Information Act response launched in mid-July confirmed the US Marshals Service holding just 28,988 BTC—about $3.3 billion at today’s costs—rekindling hypothesis that earlier administrations quietly liquidated a large share of the trove.
Separate on-chain data verify that federal wallets despatched 30,175 BTC to Coinbase Prime as early as April 2024, with further transfers price $1.9 billion following in December 2024.
Mallers seized on those numbers. “I think the Democrats sold off a bunch of that Bitcoin, and they don’t want to announce anything until they can build the position back,” he said, calling the audit delay “a branding problem” for a nation that payments itself as the future Bitcoin super-power.
Market Backdrop
Bitcoin is trading above $114,000 after peaking at $123,000 last week, up more than one hundred pc year-on-year. The float is already constrained: roughly 92 p.c of all cash are mined, and large swaths sit in dormant or long-term-holder wallets. Should the Treasury speed up SBR purchases—as Mallers predicts—the incremental buy-side stress might tighten provide additional.
From Mallers’ vantage level, the political embarrassment he describes is finally price-positive: “If the US wants to plant its flag as the crypto capital, it has no choice but to accumulate. That’s the bullish takeaway. We’re talking about a buyer with the deepest pockets on Earth.”
Whether Congress will backstop those purchases is another matter. Senator Cynthia Lummis has re-introduced a invoice directing the Treasury to purchase up to a million BTC over 5 years, but appropriations committees have yet to schedule hearings.
At press time, BTC traded at $114,572.
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