Galaxy Digital’s research division predicts that the United States government will not purchase Bitcoin in 2025 but will focus on safeguarding its existing holdings of the cryptocurrency.
US Government’s Bitcoin Plans for 2025
According to a report by Galaxy Research on December 27, 2023, Alex Thorn, head of research at Galaxy Research, confirmed that the US government is not expected to buy any Bitcoin in 2025. Instead, the government will work on creating a stockpile using the Bitcoin it already holds. Discussions surrounding an expanded Bitcoin reserve policy will continue in various government departments and agencies.
Key Point: The US government currently holds 183,850 BTC, valued at approximately $17.36 billion, spread across 36 known addresses.
Exploring a Bitcoin Reserve Policy
Galaxy Research highlights the possibility of the US government exploring an expanded Bitcoin reserve policy in the near future. This could involve continued discussions and strategic decisions regarding Bitcoin as a reserve asset, although no direct purchases are anticipated in 2025.
Key Point: The US government’s focus will be on managing and safeguarding its existing Bitcoin holdings, with no immediate plans to increase its position.
Bitcoin Act 2024 and Future Prospects
The proposed Bitcoin Act 2024, introduced by Wyoming Senator Cynthia Lummis, suggests a different approach. If passed, this legislation would allow the US government to purchase 200,000 BTC annually over five years, eventually accumulating 1 million Bitcoin in the treasury. This reserve would be held for at least 20 years.
Key Point: The Bitcoin Act 2024 could significantly alter the US government’s stance on Bitcoin, turning it into a reserve asset if passed.
Global Competition and Bitcoin Adoption
Galaxy analysts also predict that up to five Nasdaq 100 companies and five nation-states could add Bitcoin to their balance sheets or sovereign wealth funds in the coming years. This may trigger a global race, particularly among unaligned nations or those with large sovereign wealth funds, to acquire or mine Bitcoin.
Key Point: Countries, especially those adversarial to the United States, may drive the adoption of Bitcoin through mining or strategic acquisition.
Global Reactions to Bitcoin Adoption
The idea of Bitcoin as a reserve asset is drawing attention worldwide. Japan’s Prime Minister Shigeru Ishiba expressed uncertainty about the movement of countries like the US regarding Bitcoin reserves. Meanwhile, Changpeng Zhao (CZ), former CEO of Binance, believes that smaller nations are likely to lead the charge in adopting Bitcoin reserves, though the transition may be gradual.
Key Point: The global response to Bitcoin reserves remains mixed, with countries waiting to see how the US and others move forward.
Conclusion
While the US government is not expected to purchase Bitcoin in 2025, discussions on expanding its Bitcoin reserve policy continue. The potential introduction of the Bitcoin Act 2024 could reshape the US’s long-term approach to Bitcoin, while global competition for Bitcoin adoption is gaining
