Galaxy Digital’s head of research, Alex Thorn, predicted that the United States government will not purchase additional Bitcoin (BTC) in 2025. Instead, the US will focus on safeguarding the Bitcoin it already holds, with discussions around creating a Bitcoin reserve policy expected to continue.
Thorn’s analysis comes at a time when the US government’s Bitcoin holdings are under scrutiny. According to Spot on Chain, the US currently holds 183,850 BTC, valued at approximately $17.36 billion across various known addresses. This stockpile has drawn attention, especially considering the growing global interest in Bitcoin as a potential reserve asset.
The US government is exploring a Bitcoin reserve policy, with Thorn highlighting that different departments and agencies will likely examine the expansion of this policy. However, Thorn clarified that the government is unlikely to buy new Bitcoin in the short term, focusing instead on managing its existing supply.
A potential game-changer in this policy area could be Wyoming Senator Cynthia Lummis’ proposed Bitcoin Act 2024. If passed, the act would authorize the US government to purchase 200,000 BTC annually over five years, ultimately accumulating a total of 1 million Bitcoin. This reserve would be held for at least 20 years, potentially solidifying Bitcoin’s role in US treasury reserves.
While the US government may hold off on new acquisitions for now, the idea of nation-states and major corporations adding Bitcoin to their reserves is gaining momentum. Galaxy Digital analyst “JW” speculated that up to five Nasdaq 100 companies and five countries could follow suit, integrating Bitcoin into their sovereign wealth funds or balance sheets. This could set off a race among nations to acquire Bitcoin, with the US’s stance on the asset likely influencing others.
In the international arena, countries are weighing their Bitcoin strategies. Japan’s Prime Minister Shigeru Ishiba expressed uncertainty over Bitcoin adoption, citing a lack of understanding of the moves by the US and other nations. Meanwhile, former Binance CEO Changpeng “CZ” Zhao indicated that China, along with smaller countries, may be among the first to adopt Bitcoin reserves, though the process may unfold gradually.
Also Read: Russia Explores Bitcoin to Bypass Sanctions, Marking a Geopolitical Shift in Global Trade
As the global debate over Bitcoin’s role in national reserves heats up, the US government’s cautious approach may serve as a bellwether for other nations considering their stance on the cryptocurrency.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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