US government will not buy Bitcoin in 2025 — Galaxy Research

Key Points

  • Galaxy Research predicts the US government will not buy Bitcoin in 2025 but will explore an expanded Bitcoin reserve policy.
  • The US government currently holds 183,850 BTC, valued at approximately $17.36 billion.
  • Wyoming Senator Cynthia Lummis proposed the Bitcoin Act 2024, aiming to add Bitcoin to the US treasury as a reserve asset.
  • Other nations might follow the US's lead in Bitcoin adoption, potentially leading to a competitive race to acquire Bitcoin.

Summary

Galaxy Research has forecasted that while the US government will not purchase Bitcoin in 2025, it will continue to explore the idea of an expanded Bitcoin reserve policy. Currently, the US holds about 183,850 BTC, worth around $17.36 billion, across various known addresses. Wyoming Senator Cynthia Lummis has introduced the Bitcoin Act 2024, which, if passed, would allow the US to buy 200,000 BTC annually for five years, totaling 1 million BTC to be held for at least 20 years. This legislative move could set a precedent for other nations, potentially sparking a global competition to acquire Bitcoin. Galaxy analysts suggest that up to five Nasdaq 100 companies and several nation-states might also add Bitcoin to their reserves. However, countries like Japan are cautious, with Prime Minister Shigeru Ishiba indicating a lack of understanding regarding Bitcoin movements by other nations. Meanwhile, former Binance CEO Changpeng Zhao predicts that smaller countries might be the first to adopt Bitcoin reserves, although the process could be gradual.

cointelegraph
December 28, 2024
Crypto
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