US Gov Not Buying Bitcoin in 2025

Galaxy Digital’s research division says the United States government will refrain from purchasing Bitcoin (BTC) in 2025. 

Instead, according to Alex Thorn, head of Galaxy Research, the US will focus on managing its current Bitcoin holdings while continuing discussions around a Bitcoin reserve policy, which most market observers expected to happen. 

Through Galaxy Research’s X account, Thorn stated:

The U.S. government will not purchase Bitcoin in 2025, but it will create a stockpile using coins it already holds, and there will be some movement within the departments and agencies to examine an expanded Bitcoin reserve policy.

Alex Thorn, head of Galaxy Research

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US Bitcoin Reserve Policy Under Discussion

Thorn stated that US government agencies and departments might begin examining an expanded Bitcoin reserve policy. Currently, the US government holds more than 183,850 BTC, valued at US$17.36B (AU$27.3B), across 36 known addresses, according to Spot On Chain.

A proposal by Wyoming Senator Cynthia Lummis, known as the Bitcoin Act 2024, could significantly shift this policy. If passed, the act would enable the US Treasury to purchase 200,000 BTC annually over five years, ultimately accumulating 1 million BTC to be held for at least two decades.

Galaxy analyst “JW” suggested that a stronger US stance on Bitcoin adoption could prompt other nations to follow suit. Competition among nation-states, particularly those with large sovereign wealth funds or adversarial positions toward the US, could drive efforts to mine or acquire Bitcoin.

But not all market observers believe creating a Bitcoin strategic reserve will benefit the US (nor crypto). Ki Young Ju, CEO of CryptoQuant, has expressed that shifting to a Bitcoin standard could challenge the US dollar domination, as other countries would see it as losing faith in the dollar-based global monetary system:

For the debate to gain serious momentum, the U.S. would need to see its global economic dominance genuinely threatened. At present, market sentiment suggests confidence in the U.S.’s continued supremacy.

Ki Young Ju, CEO of CryptoQuant

The possibility of up to five Nasdaq 100 companies and five nations adding Bitcoin to their balance sheets or sovereign wealth funds was also highlighted. This move could signal a growing trend of institutional and governmental interest in Bitcoin as a strategic asset.

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Moreover, it looks like other nations are hesitant to commit to Bitcoin reserve strategies, mostly due to a lack of clarity on US policy. Japanese Prime Minister Shigeru Ishiba stated on December 26 that his government lacks sufficient understanding of global Bitcoin reserve trends, including those in the US.