Governments around the world are quietly pulling back from their Bitcoin positions, marking a surprising shift in the way sovereign nations are approaching the world’s most well-known cryptocurrency. According to a recent report by CoinGecko, the total amount of Bitcoin held by global governments has dropped by over 12% in just one year. Their collective holdings fell from 529,591 BTC to 463,741 BTC, now making up just 2.3% of Bitcoin’s total supply. While the numbers might seem impressive at first glance, the underlying trend points to a steady decline in governmental interest—or at least a shift in strategy.

The United States continues to lead the world in government-held Bitcoin, but its approach has been passive. The U.S. government doesn’t purchase Bitcoin directly; rather, it acquires digital assets through criminal seizures, often from illicit online operations or financial crimes. Toward the end of President Joe Biden’s administration, the U.S. began liquidating portions of its Bitcoin reserves. This decision has not gone unnoticed and even led to political reactions, such as the creation of a proposed “Crypto Reserve” by supporters of former President Donald Trump. The goal of this reserve is to prevent future sell-offs and manage seized assets more strategically.

China also remains a major holder of Bitcoin, though its stance on cryptocurrency remains hostile. Back in 2020, Chinese authorities seized nearly 200,000 BTC through various crackdowns. Since then, this vast sum has largely remained untouched. Due to the country’s anti-crypto policies and lack of further activity, China’s holdings often go unnoticed, though they remain a significant factor in the global supply.

Other countries have taken more drastic steps. Germany sold off all of its Bitcoin holdings last year, a decision driven more by fiscal necessity than anti-crypto sentiment. The funds from the sale were used to address budget shortfalls. Similarly, Ukraine liquidated its entire reserve of Bitcoin, using the proceeds to support its ongoing war efforts. Notably, Ukraine was unique in that it received much of its crypto through international donations rather than criminal seizures.

Interestingly, only El Salvador has gone against the global trend. Despite agreeing to pause Bitcoin purchases in order to meet International Monetary Fund conditions for a loan, the country has quietly continued to build its holdings. President Nayib Bukele has made Bitcoin a central part of the country’s financial strategy, famously declaring it legal tender in 2021. This defiance has created tension both domestically and internationally, but so far, the IMF appears satisfied with the country’s broader financial practices.

Bhutan also briefly made headlines for its Bitcoin holdings, which came from mining powered by its hydroelectric resources. However, the country has sold off nearly half of its supply in recent months, reflecting a more opportunistic approach rather than a long-term investment strategy.

What emerges from CoinGecko’s analysis is a more fragile picture of government-held Bitcoin than many might expect. While some countries once looked poised to become serious players in the crypto economy, many have since stepped back or cashed out entirely. Only five governments still hold Bitcoin, and two have fully exited the space within a year. With global economies in flux and political leadership shifting, it remains to be seen whether Bitcoin will regain favor among state actors—or remain the domain of private investors and tech-savvy nations like El Salvador.