Bitcoin Purchases Unlikely for US Government in 2025 but Reserve Policy May Expand, Says Galaxy Research

According to Galaxy Research, the US government is not expected to buy Bitcoin in 2025 but may initiate significant discussions to expand its Bitcoin reserve policy, signaling strategic shifts in its cryptocurrency approach.

US Government's Bitcoin Reserve Policy Sparks Debate

On Dec. 27, Galaxy Research chief of research Alex Thorn claimed, “The US government will not purchase Bitcoin in 2025.” Thorn stated that the US government would establish a stockpile of Bitcoin, which it currently possesses, while concurrently engaging in discussions regarding a Bitcoin reserve policy, Cointelegraph reports.

"There will be some movement within the departments and agencies to examine an expanded Bitcoin reserve policy," Thorn announced.

US Holds $17 Billion in Bitcoin Reserves

Spot on Chain reports that some known US government addresses have 183,850 BTC, with a value of around $17.36 billion.

If Senator Cynthia Lummis's Bitcoin Act of 2024 were to become law, the United States government would be permitted to purchase one million Bitcoins—an amount equivalent to 200,000 BTC per year for five years—and keep onto them for a minimum of twenty years, serving as a reserve asset.

Nasdaq Corporations and Sovereign Bitcoin Funds

According to "JW," another Galaxy expert, five Nasdaq 100 corporations and five countries might include Bitcoin in their financial statements or sovereign wealth funds.

According to JW, if the US takes a harder line on Bitcoin adoption, it might cause other countries to rush to mine or buy Bitcoin:

“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.”

China and Smaller Nations Eye Bitcoin Reserves

In a statement made on December 26th, Prime Minister Shigeru Ishiba of Japan expressed his lack of familiarity with the "movements" made by nations such as the United States and others in reference to the adoption of Bitcoin reserves.

“It is difficult for the government to express its views,” Ishiba remarked.

China is expected to join other nations in establishing a strategic Bitcoin reserve, according to Changpeng "CZ" Zhao, the former CEO of Binance.

During the Bitcoin MENA conference in Abu Dhabi on December 9, Zhao stated his belief that "smaller countries" will most likely be the pioneers in implementing a Bitcoin reserve, although he acknowledged that this transition could be gradual.