Bitcoin USD: Why The US Govt. Won’t Buy More BTC In 2025?
- Reports from Galaxy Research suggest that the US government might not purchase Bitcoin USD in 2025.
- The government would stock existing Bitcoins and may discuss expanding its Bitcoin reserve policy.
- US currently holds 183,850 BTC, at a value of $17.36 Billion.
Galaxy Research, a crypto and blockchain research platform, recently made many revelations regarding the industry. Per one of their prediction, the US government is unlikely to buy any Bitcoin USD in 2025.
18 – Tether’s long-standing market dominance will drop below 50%, challenged by yielding alternatives like Blackrock’s BUIDL, Ethena’s USDe, and even USDC Rewards paid by Coinbase/Circle.
As Tether internalizes yield revenue from USDT reserves to fund portfolio investments,… pic.twitter.com/k8naS8rSMa
— Galaxy Research (@glxyresearch) December 27, 2024
Rather than purchasing Bitcoins, it might store and maintain its current Bitcoin holdings. The discussion of a Bitcoin reserve policy is expected to continue.
They anticipate that the US government will consider extending this policy. It indicates that potential long-term strategies for cryptocurrency adoption may come into play.
Predictions for 2025
The research division of Galaxy Digital released Bitcoin Prediction 2025 through an X post on December 27, 2024. The analysis indicated that the USA will not expand its Bitcoins holdings in the same year.
In the report, Galaxy Digital’s head of research, Alex Throne, stated, “The US government will not purchase Bitcoin in 2025”. However, Throne further mentioned that the government will create a stockpile using coins it already holds.
He proposed that the government could hold departmental internal talks regarding a broader Bitcoin reserve policy. He did clarify, though, that there aren’t any intentions to make immediate big purchases.
“There will be some movement within the departments and agencies to examine an expanded Bitcoin reserve policy,” the head of the research said.
JW, another analyst from Galaxy Digital, also made a few projections. Per him, Up to five nations and five Nasdaq 100 companies might include Bitcoin USD on their balance sheets by 2025.
JW stated, “Competition among nation-states, particularly unaligned nations, those with large sovereign wealth funds, or even those adversarial to the United States, will drive the adoption of strategies to mine or otherwise acquire Bitcoin.”
US Government’s Current Bitcoin USD Holdings
The US government has a significant quantity of Bitcoin USD in its treasury. Over the years, this reserve has only been growing, making it one of the largest holders of Bitcoin.
This vast quantity was obtained from seizures and forfeitures tied to criminal investigations. One such instance of seizure was the shutdown of Silk Road. That added a significant portion of Bicoins to the government’s fold.
Silk Road was an online illegal market that was among the first modern darknet markets. While dismantling the Silk Road, the government confiscated over 69,000 Bitcoin.
The Spot On Chain data suggests that the US government’s current Bitcoin USD holdings total 183,850 BTC. That is worth around $17.36 Billion across several known addresses.
Wyoming Senator Cynthia Lummis’ Proposed Bitcoin Act 2024
Cynthia Lummis has been a vocal advocate of establishing a strategic Bitcoin reserve. For this to happen, on July 31, 2024, she introduced the Bitcoin Act 2024.
The US government may add Bitcoin USD to its treasury as a reserve asset if this measure is approved. Over the course of five years, the Department of the Treasury would purchase 200,000 Bitcoin every year, totaling one million.
This act requires the department to retain the Bitcoins it has obtained for 20 years. They can, however, use it to settle federal debt.
