The landscape of cryptocurrency is continuously evolving, and a recent report indicates that the United States government is not planning to purchase Bitcoin in 2025. Instead, it will focus on utilizing its existing Bitcoin holdings, currently amounting to approximately 183,850 BTC.
According to Galaxy Research, led by analyst Alex Thorn, there will be discussions and potential movements within various government departments to evaluate an expanded Bitcoin reserve policy. This could reshape how the government interacts with cryptocurrency as part of its financial strategy.
Thorn emphasizes that while the government will not be acquiring additional Bitcoin, it recognizes the importance of its current assets valued at around $17.36 billion. These holdings are spread across 36 known addresses, showcasing a significant government engagement with Bitcoin, albeit in a non-purchasing manner for the time being.
Moreover, the proposed Bitcoin Act 2024 by Wyoming Senator Cynthia Lummis aims to allow the U.S. treasury to buy 200,000 BTC annually over five years, building a reserve of 1 million Bitcoin, which would be retained for at least 20 years. Should this legislation pass, it could markedly shift the landscape of government-held assets.
Galaxy analysts also highlight that up to five Nasdaq 100 companies and five nation-states might consider incorporating Bitcoin into their balance sheets or sovereign wealth funds. This potential trend towards Bitcoin adoption among nation-states could instigate competition in Bitcoin mining and acquisition.
The global landscape is watching closely, as other countries may be waiting to see how the US acts on its Bitcoin strategy. For instance, Japan’s Prime Minister Shigeru Ishiba recently admitted a lack of clarity regarding the global movements towards Bitcoin reserves. Meanwhile, former Binance CEO Changpeng “CZ” Zhao predicts that smaller countries, along with China, may be the first to establish strategic Bitcoin reserves.
In summary, while 2025 may not see the U.S. actively purchasing Bitcoin, there is an expectation for significant discussions about enhancing the nation’s stance on Bitcoin reserves. This shift, albeit gradual, could create a ripple effect through global markets and influence other nations’ strategies regarding cryptocurrency.
