Galaxy Digital Research Head Doubts US Will Purchase Bitcoin in 2025

Galaxy Research predicts that the U.S. government will not buy Bitcoin in 2025, though it will focus on protecting the Bitcoin it already holds.

Currently, the U.S. holds about 183,850 BTC, worth around $17.36 billion. Instead of purchasing more, the government is expected to explore a Bitcoin reserve policy, looking into ways to manage its existing Bitcoin supply. This exploration may involve different government departments and agencies, but no new Bitcoin purchases are anticipated in 2025.

However, the idea of the US government holding Bitcoin as a reserve asset has gained attention. Wyoming Senator Cynthia Lummis has proposed the Bitcoin Act 2024, which, if passed, would allow the US to buy 200,000 BTC annually for five years, eventually reaching 1 million BTC.

This could make Bitcoin a long-term part of the US government’s financial strategy. However, for 2025, the focus will be on safeguarding the Bitcoin already in possession.

Galaxy analysts also predict that some nations and Nasdaq 100 companies might start adding Bitcoin to their balance sheets or sovereign wealth funds in the future.

The adoption of Bitcoin by other countries could trigger competition, especially among nations with large sovereign wealth funds or those critical of the U.S. This could drive more countries to adopt Bitcoin reserves or mine Bitcoin to strengthen their financial systems.

Therefore, the U.S. government’s decision to not purchase additional Bitcoin in 2025 may result in short-term price stability or slight declines. However, in the long term, if more nations and companies adopt Bitcoin as a reserve asset, increased demand could drive prices higher.

Global Uncertainty Surrounding Bitcoin Reserves

On December 26, Japan’s Prime Minister Shigeru Ishiba said his government doesn’t fully understand the moves other countries, like the US, are making regarding Bitcoin reserves. He explained that it’s hard for Japan to take a stance on Bitcoin until they have a clearer understanding of what other nations are doing. This shows that Japan is cautious about adopting Bitcoin as a reserve asset, waiting to see how other countries, like the US, approach it.

Meanwhile, former Binance CEO Changpeng “CZ” Zhao believes that China might be one of the first big countries to adopt Bitcoin reserves. He also mentioned that smaller countries could lead the way, but this process might happen gradually. The ongoing discussions about Bitcoin being used as a reserve asset could impact future global financial policies and regulations.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments