The research team at Galaxy Digital has concluded that in 2025, the US government will hold onto its Bitcoin Reserve Eyes rather than purchase any more.
The US government will not purchase Bitcoin in 2025,” stated Alex Thorn, chief of research at Galaxy Research, in a report released on December 27. While talks on a Bitcoin reserve policy go on, the US government will instead use the $93,923 worth of Bitcoin that it now has to construct a stockpile, according to Thorn.
U.S. Eyes 1M Bitcoin Reserve by 2029
Thorn stated that there will be an examination of an extended Bitcoin Reserve Eyes reserve policy by several departments and agencies. The United States government is believed to be holding 183,850 Bitcoins (BTC) at many known addresses, valued at around $17.36 billion (Spot on Chain). If Senator Cynthia Lummis’s Bitcoin Act of 2024 were to become law.
The United States government would be able to purchase 200,000 BTC per year for five years, for a total of 1 million Bitcoins, which it would then be able to store for a minimum of 20 years, making it a reserve asset. Another Galaxy analyst, “JW,” has speculated that five nations and five Nasdaq 100 businesses would include Bitcoin in their sovereign wealth funds or balance sheets.
U.S. Crackdown MayBitcoin Reserve Eyes
If the United States takes a more stringent stance on adopting Bitcoin, it has the potential to generate a rush of people worldwide to mine or buy Bitcoin. Nation-states, particularly those not linked with the United States or antagonistic to the United States, will engage in activities that will allow them to acquire Bitcoin, whether through mining or some other method.
Japan PM Cautious on Bitcoin Reserves
Prime Minister Shigeru Ishiba of Japan stated on December 26 that he is not well-informed about the movements” involving the adoption of Bitcoin Reserve Eyes reserves by countries such as the United States and others.” Ishiba’s main point was that the government struggles to articulate its opinions.
Changpeng “CZ” Zhao, the former CEO of Binance, expects China to join other nations in establishing a strategic Bitcoin reserve. According to Zhao, who spoke at the Bitcoin MENA conference in Abu Dhabi on December 9, smaller countries” would probably be the ones to embrace a Bitcoin reserve first, though the transition may be gradual.
Final Thought
The changing landscape of Bitcoin Reserve Eyes reserves shows a shift in global financial policy. Major powers such as the United States are considering large-scale holdings of Bitcoin, while countries such as Japan are adopting a more cautious approach. Competition for digital assets may grow as smaller countries and non-aligned states investigate the possibility of accumulating Bitcoin. This might potentially reshape the geopolitical and economic dynamics in the years to come.
FAQs
How much Bitcoin does the U.S. government currently hold?
The U.S. government currently holds around 183,850 Bitcoins, valued at approximately $17.36 billion
What is the U.S. government's Bitcoin reserve policy?
The U.S. government may adopt a Bitcoin reserve policy, potentially acquiring 200,000 BTC per year for five years, totaling 1 million Bitcoins by 2029.
What could the impact of a U.S. crackdown on Bitcoin be?
A more stringent stance on Bitcoin by the U.S. could trigger a global rush to mine or acquire Bitcoin, particularly by countries not aligned with the U.S.
How does Japan view Bitcoin reserves?
Japan's Prime Minister Shigeru Ishiba has expressed caution, stating that the government finds it challenging to form a clear position on Bitcoin reserves.
