Michaela Alvez
Alex Thorn, Head of Research at Galaxy Digital, has forecasted “some movement” from the U.S. government to explore an “expanded Bitcoin reserve policy.” He predicts, however, that no Bitcoin (BTC) will be purchased in 2025.
In a recent X thread, Galaxy Digital’s research team projected that the U.S. government will focus on protecting its current Bitcoin holdings throughout 2025.
In the report, Thorn explains that while discussions around a potential Bitcoin reserve policy may advance, the government is likely to prioritize managing its current holdings.
According to blockchain analytics platform Spot on Chain, the U.S. government currently holds approximately 183,850 BTC, valued at $17.382 billion at the time of writing. These BTC holdings are distributed across multiple identified wallet addresses.
In July 2024, Wyoming Senator Cynthia Lummis introduced the Bitcoin Act 2024. This proposal aims to incorporate Bitcoin as a reserve asset in the U.S. Treasury.
The legislation outlines a plan for the government to purchase 200,000 BTC annually. This will occur over five years, amassing a total of 1 million BTC. Under the act, these holdings will be maintained in a strategic reserve. They will be held for a minimum of 20 years. This signals a potential shift in the nation’s approach to cryptocurrency.
Fellow Galaxy Digital analyst “JW” suggested that as many as five Nasdaq 100 companies could potentially integrate Bitcoin into their balance sheets. Additionally, he noted that an equal number of nation-states might do the same with their sovereign wealth funds.
“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,” JW stated.
American States Adding Bitcoin to Reserves
Ohio has become the latest state to explore incorporating Bitcoin into its treasury reserves. This follows the introduction of a new bill by House Republican leader Derek Merrin.
In early December, Samuel Armes, President of the Florida Blockchain Business Association (FBBA), revealed plans for Florida to establish a strategic Bitcoin reserve starting in 2025.
Armes stated that Florida plans to leverage its $185.7 billion pension fund by allocating a small fraction to Bitcoin as a hedge against inflation. He highlighted that even a 1% allocation could translate to around $1.87 billion invested in the cryptocurrency.
Read More
- US Leaders Split on Bitcoin: Fed Rejects Reserves, Lummis Calls for Strategy
- Peter Schiff Urges Biden to Sell U.S. Bitcoin Reserves to Cut Deficit Before Leaving Office
- Bitcoin Reserve Bill Faces Headwinds: Peter Schiff Warns of Economic Consequences
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
