Galaxy Digital Says the US Government Will Refrain from Purchasing Bitcoin (BTC) in 2025

Instead, according to Alex Thorn, head of Galaxy Research, the US will focus on managing its current Bitcoin holdings while continuing discussions around a Bitcoin reserve policy, which most market observers expected to happen.

Galaxy Digital's research division claims that the United States government will not be purchasing Bitcoin (BTC) by 2025.

Instead, the US will focus on managing its current Bitcoin holdings and continuing discussions around a Bitcoin reserve policy, which most market observers expected to happen, according to Alex Thorn, head of Galaxy Research.

Via Galaxy Research's X account, Thorn noted:

US Bitcoin Reserve Policy Under Discussion

According to Thorn, US government agencies and departments may start exploring an expanded Bitcoin reserve policy. Currently, the US government holds over 183,850 BTC, or about US$17.36B (AU$27.3B), across 36 known addresses, Spot On Chain reports.

A proposal by Wyoming Senator Cynthia Lummis, called the Bitcoin Act 2024, could drastically shift this policy. If passed, the act would allow the US Treasury to purchase 200,000 BTC annually over five years, ultimately accumulating 1 million BTC to be held for at least two decades.

Galaxy analyst “JW” suggested that a stronger US stance on Bitcoin adoption could prompt other nations to follow suit. Competition among nation-states, especially those with large sovereign wealth funds or adversarial positions toward the US, might drive efforts to mine or acquire Bitcoin.

But not all market observers believe creating a Bitcoin strategic reserve will benefit the US (or crypto). Ki Young Ju, CEO of CryptoQuant, has said that shifting to a Bitcoin standard could challenge the US dollar domination, as other countries would see it as losing faith in the dollar-based global monetary system:

The possibility of up to five Nasdaq 100 companies and five nations adding Bitcoin to their balance sheets or sovereign wealth funds was also highlighted. This move could signal a growing trend of institutional and governmental interest in Bitcoin as a strategic asset.

Moreover, it seems other nations are holding back on committing to Bitcoin reserve strategies, largely due to a lack of clarity on US policy. Japanese Prime Minister Shigeru Ishiba said on December 26 that his government lacks sufficient understanding of global Bitcoin reserve trends, including those in the US.