The research team at Galaxy Digital has come to the conclusion that in 2025, the US government will hold onto its Bitcoin Reserve Strategy rather than purchase any more. According to Alex Thorn, chief of research at Galaxy Research, the US government will not purchase Bitcoin in 2025. Instead, the US government will use the Bitcoin BTC$94,928 that it now has on hand to construct a stockpile, according to Thorn, while talks about a Bitcoin reserve policy go on.
U.S. Mulls Bitcoin Reserve Policy
Thorn stated that several departments and agencies will examine an extended Bitcoin Reserve Strategy reserve policy. The United States government is believed to hold 183,850 Bitcoins (BTC) at many known addresses, worth 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. If the US adopts a more stringent stance on Bitcoin adoption, it could trigger a global rush to mine or purchase Bitcoin.
Japan’s PM and CZ 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 Strategy reserves by countries such as the United States and others. The government finds it difficult to express its views,” Ishiba remarked. 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 first to embrace a Bitcoin reserve, though the transition may be gradual.
Final Thoughts
If the United States government implements a Bitcoin reserve policy, it might change the world’s perspective on digital assets. According to Galaxy Digital’s findings, the United States will concentrate on increasing its existing holdings of 183,850 BTC in 2025 rather than buying more Bitcoin. A number of countries and companies, including some in the Nasdaq100, have expressed interest in adopting Bitcoin as a reserve asset, and the planned Bitcoin Act of 2024 has the potential to reinforce this position further.
The slow shift to Bitcoin Reserve Strategy reserves might alter the future trajectory of sovereign wealth management, especially if other nations follow China’s lead and consider comparable actions. Major figures’ influence, such as Changpeng Zhao’s, shows that Bitcoin’s potential as a reserve asset is gaining traction, even though Japan’s prime minister is still unsure about these developments.
FAQs
What is the Bitcoin Act of 2024?
If passed, the Bitcoin Act of 2024 would allow the US government to purchase up to 1 million BTC over five years and store it as a reserve asset for at least 20 years.
How might other countries adopt Bitcoin as a reserve asset?
Countries like China may join the trend of establishing Bitcoin reserves, with smaller nations potentially adopting it first. Some speculate that Nasdaq 100 companies and sovereign wealth funds will follow suit.
What is the potential impact of a US Bitcoin reserve policy?
If implemented, the policy could drive global adoption of Bitcoin as a reserve asset and shift sovereign wealth management strategies, especially if other nations follow the US's lead.
Why is Japan's Prime Minister unsure about Bitcoin reserves?
Japan's Prime Minister Shigeru Ishiba has stated he is not well-informed about Bitcoin reserve adoption, indicating that Japan is still uncertain about its approach to this trend.
