According to Galaxy Digital, the US government will protect current Bitcoin reserves instead of purchasing more in 2025.
Senator Cynthia Lummis introduces the Bitcoin Act to invest 200000 Bitcoin into America’s treasury for five years.
Experts believe the rationales of financial and strategic imperatives are pushing nation-states into competition for Bitcoin reserves.
The United States government will not purchase additional Bitcoin in 2025. Galaxy Digital’s head of research, Alex Thorn, revealed this in a recent report. Instead, the government will focus on safeguarding its current Bitcoin reserves. Thorn noted that discussions about a national Bitcoin reserve policy will continue across different government agencies.
Blockchain analytics firm Spot On Chain reported that the US government holds approximately 183,850 BTC. These reserves are spread across 36 known addresses and are valued at around $17.36 billion. The government will likely use these reserves strategically while avoiding new acquisitions in the coming year.
Bitcoin Reserve Policy Under Consideration
Wyoming Senator Cynthia Lummis has introduced the Bitcoin Act 2024 to the senate. The bill indicates that the US government should buy 200 000 BTC in the next five years.. This plan aims to build a national Bitcoin reserve of 1 million BTC, which would be held for at least two decades. If the proposal passes, it could position the US as a leading global player in Bitcoin adoption. Analysts believe such a move would also influence other nations to adopt similar strategies.
Galaxy Digital analyst JW highlighted that large corporations and sovereign wealth funds might also follow this trend. Up to five Nasdaq 100 companies and five nation-states may soon add Bitcoin to their balance sheets.
Global Response to US Bitcoin Strategy
Countries worldwide are closely monitoring the US stance on Bitcoin reserves. Japan's Prime Minister Shigeru Ishiba recently expressed uncertainty about global Bitcoin reserve strategies. He stated that Japan lacks sufficient information about other countries' Bitcoin policies.
Ishiba emphasized the importance of clarity before Japan could make any strategic Bitcoin-related decisions. This cautious approach reflects broader hesitancy among major economies regarding Bitcoin reserves.
At the Bitcoin MENA conference in Abu Dhabi, former Binance CEO Changpeng Zhao shared his perspective. Zhao predicted that smaller nations would adopt Bitcoin reserves before larger economies. He also mentioned that this transition might happen slowly over time.
Nation-State Competition for Bitcoin May Rise
JW from Galaxy Digital believes stronger US involvement in Bitcoin could trigger competition among other countries. Nations with significant sovereign wealth funds or those facing financial instability may prioritize Bitcoin acquisition.
Some countries might increase Bitcoin mining activities, while others may focus on direct purchases. These strategies aim to secure Bitcoin as part of their national financial reserves. Analysts predict that the US government's Bitcoin strategy will continue to influence global financial markets. As institutional adoption of Bitcoin rises, nations will face growing pressure to clarify their cryptocurrency policies.
The coming year may see increased global focus on Bitcoin as both a financial asset and a strategic reserve tool. The US government's careful approach will likely set a precedent for others to follow.
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