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While speculation is rife about institutional adoption of bitcoin, Galaxy Research tempers expectations. According to the report published on December 27, the U.S. government will not buy bitcoin in 2025 but may explore new strategies regarding its existing reserves.
A cautious position on Bitcoin reserves
The U.S. government, which holds already 183,850 BTC (approximately $17.36 billion) spread across 36 known addresses, does not plan to increase its positions in 2025.
Alex Thorn, director of research at Galaxy Research, clarifies that U.S. authorities would prefer to capitalize on their current holdings rather than make new massive purchases.
This position contrasts with the Bitcoin Act 2024, proposed by Wyoming Senator Cynthia Lummis, which suggested acquiring 200,000 BTC annually over five years. This ambitious plan, aimed at building a reserve of one million bitcoins over two decades, therefore seems unlikely in the short term.
The perspectives from Galaxy Research nonetheless suggest that some departments and government agencies may begin to consider an “expanded bitcoin reserve policy“, paving the way for a potential longer-term strategic evolution.
An international domino effect in perspective
The attitude of the U.S. government could significantly influence the position of other nations regarding bitcoin. In Japan, Japanese Prime Minister Shigeru Ishiba recently admitted to waiting to see the evolution of the U.S. position before making a statement on a possible bitcoin reserve policy.
According to “JW”, another analyst at Galaxy, up to five companies from the Nasdaq 100 and five nation-states could nonetheless add bitcoin to their balance sheets or sovereign funds in 2025.
This forecast echoes the statements of Changpeng Zhao, former CEO of Binance, who anticipates bitcoin reserve adoption by several countries, with China potentially in the race.
In summary, the wait-and-see position of the U.S. government in 2025 does not preclude a significant evolution of the crypto landscape on a global scale. As suggested by the recent initiative of the State of Ohio with its HB 703 bill, institutional adoption of Bitcoin could first manifest at the state and corporate level before extending to central governments.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
