Galaxy Digital’s research division predicts that the United States government will not purchase Bitcoin in 2025 but will safeguard its current holdings.
“The US government will not purchase Bitcoin in 2025,” stated Alex Thorn, Galaxy Research’s head of research, in a Dec. 27 report. Thorn noted that the government would instead maintain its Bitcoin reserves while discussions about a Bitcoin reserve policy continue.
Exploring a Bitcoin Reserve Policy
“There will be some movement within the departments and agencies to examine an expanded Bitcoin reserve policy,” Thorn said.
Currently, the US government holds 183,850 BTC, valued at approximately $17.36 billion, spread across various known addresses, according to Spot on Chain.
Wyoming Senator Cynthia Lummis has proposed the Bitcoin Act 2024, which, if enacted, would allow the US to include Bitcoin as a treasury reserve asset. This would involve purchasing 200,000 BTC annually for five years, accumulating 1 million Bitcoin to be held for at least 20 years.
Nation-State Competition for Bitcoin
Galaxy analyst “JW” predicted that up to five Nasdaq 100 companies and five nation-states might add Bitcoin to their balance sheets or sovereign wealth funds.
He suggested that increased US involvement in Bitcoin could trigger a competitive rush among nations to mine or acquire Bitcoin.
“Competition among nation states, particularly unaligned nations, those with large sovereign wealth funds, or even those adversarial to the United States, will drive the adoption of strategies to mine or otherwise acquire Bitcoin,” JW explained.
Global Perspectives on Bitcoin Reserves
On Dec. 26, Japan’s Prime Minister Shigeru Ishiba expressed uncertainty about the US and other countries adopting Bitcoin reserves, stating, “It is difficult for the government to express its views.”
Meanwhile, former Binance CEO Changpeng “CZ” Zhao suggested that China might adopt a strategic Bitcoin reserve. At the Bitcoin MENA conference in Abu Dhabi on Dec. 9, Zhao said smaller countries would likely lead in adopting Bitcoin reserves, albeit at a gradual pace.