Alex Thorn Forecasts ‘Some Movement’ From the U.S. Government to Explore an ‘Expanded Bitcoin Reserve Policy’

In a recent X thread, Galaxy Digital's research team projected that the U.S. government will focus on protecting its current Bitcoin holdings

Galaxy Digital Head of Research Alex Thorn has predicted that the U.S. government will make “some movement” to explore an “expanded Bitcoin reserve policy” in 2025, but that no BTC will be purchased during the year.

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.

“21 – The U.S. government will not purchase Bitcoin in 2025, but it will create a stockpile using coins it already holds, and there will be some movement within the departments and agencies to examine an expanded Bitcoin reserve policy.” –@intangiblecoins

In the report, Thorn explained 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 and will be held for a minimum of 20 years, signaling a potential shift in the nation's approach to cryptocurrency.

Meanwhile, another Galaxy Digital analyst, known as “JW,” suggested that as many as five Nasdaq 100 companies could potentially integrate Bitcoin into their balance sheets, while 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 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 with 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.

According to Armes, Florida intends to utilize its $185.7 billion pension fund, allocating a small fraction to Bitcoin as a hedge against inflation. He highlighted that even a 1% allocation could result in approximately $1.87 billion being invested in the cryptocurrency.

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.