A recent report from Galaxy Digital’s research division predicts that the United States government will not purchase Bitcoin in 2025. Instead, it is expected to maintain its existing Bitcoin holdings while exploring the potential of an expanded Bitcoin reserve policy.
No New Bitcoin Purchases, But Discussions Continue
Alex Thorn, head of research at Galaxy Digital, stated in the December 27 report that the US government will focus on safeguarding the 183,850 Bitcoin it currently holds, valued at approximately $17.36 billion. Thorn also noted that government agencies may take steps to assess the viability of a broader Bitcoin reserve policy.
Bitcoin Reserve Policy in Focus
The proposed Bitcoin Act of 2024, introduced by Wyoming Senator Cynthia Lummis, could enable the US government to incorporate Bitcoin into its treasury reserves. The bill outlines a plan to purchase 200,000 BTC annually over five years, ultimately accumulating 1 million Bitcoin to hold for at least two decades.
If enacted, this policy could solidify Bitcoin as a long-term asset in the US government’s portfolio. However, as of now, no formal commitments to purchasing additional Bitcoin have been made.
Global Bitcoin Adoption and Competition
Galaxy analyst “JW” suggested that Bitcoin adoption may extend beyond the US, predicting that up to five Nasdaq 100 companies and five nation-states could add Bitcoin to their balance sheets or sovereign wealth funds in the near future.
The growing interest in Bitcoin among global powers could ignite competition, especially among nations with large sovereign wealth funds or those adversarial to the US. JW emphasized that a stronger stance by the US on Bitcoin adoption could trigger a race to mine or acquire the cryptocurrency.
Japan and China’s Position on Bitcoin
Japan’s Prime Minister Shigeru Ishiba recently expressed uncertainty regarding the United States’ stance on Bitcoin, stating that the Japanese government is cautious about adopting the cryptocurrency as part of its reserves.
Meanwhile, former Binance CEO Changpeng “CZ” Zhao suggested that China might strategically adopt Bitcoin reserves in the future. At the Bitcoin MENA conference in Abu Dhabi earlier this month, Zhao shared his belief that smaller nations may be the first to adopt Bitcoin as a reserve asset, though progress may unfold gradually.
