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US government to hold Bitcoin but not purchase in 2025

US government to hold Bitcoin but not purchase in 2025

GrafaGrafa2024/12/30 03:00
By:Mahathir Bayena

Galaxy Research has forecasted that the US government will not buy Bitcoin (CRYPTO:BTC) in 2025, though it will maintain its existing holdings while evaluating an expanded Bitcoin reserve policy.

"The US government will not purchase Bitcoin in 2025," according to Alex Thorn, head of Galaxy Research.

The government is expected to focus on stockpiling the Bitcoin it already possesses while continuing to discuss a potential reserve policy for the digital asset.

The US currently holds 183,850 BTC, valued at approximately $17.36 billion, across 36 known addresses, according to data from Spot on Chain.

Thorn noted that despite the lack of new purchases, government departments will likely take steps to explore the expansion of a Bitcoin reserve policy.

In 2024, Wyoming Senator Cynthia Lummis introduced the Bitcoin Act 2024, which, if passed, would allow the US government to acquire 200,000 BTC annually over five years.

This policy could result in a total of 1 million Bitcoin held in government reserves for at least 20 years.

Another Galaxy analyst, identified as "JW," suggested that up to five Nasdaq 100 companies and five nation-states may eventually add Bitcoin to their reserves or sovereign wealth funds.

This could lead to increased competition among countries, particularly those opposed to the US, to acquire Bitcoin through mining or purchasing.

In contrast, Japan’s Prime Minister Shigeru Ishiba expressed uncertainty about the actions of other countries regarding Bitcoin reserves, stating that his government lacks sufficient understanding of the matter.

Former Binance CEO Changpeng "CZ" Zhao also predicted that smaller nations might adopt Bitcoin reserves first, although the process is expected to unfold gradually.

At the time of reporting, the Bitcoin price was $93,716.91.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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