US Moves to Designate Bitcoin as a Strategic Asset, Raising Expectations of a 'Bitcoin Space Race' Among Nations

Analyzing the crypto market's outlook for 2025, the research arm of Korea's crypto exchange Korbit predicted that national competition over Bitcoin will begin

The United States is planning to designate Bitcoin as a strategic asset, a move that could spark competition among nations over the cryptocurrency, according to Korbit Research Center.

In its analysis of the crypto market outlook for 2025, the research arm of Korean crypto exchange Korbit predicted that national competition over Bitcoin will begin, mirroring geopolitical tensions in space during the Cold War. Recent U.S. legislation that proposes Bitcoin as a strategic reserve has fueled optimism.

"America won the Space Race. Now America must win the Bitcoin Race," Republican U.S. Sen. Cynthia Lummis, who filed the bill, wrote on social platform X on Dec. 12.

Even in China, where crypto investment and trading are banned, some experts argued that the country should prepare for the changes unfolding in the United States, according to the report. Former Binance CEO Changpeng Zhao has also predicted that the Chinese government may also designate Bitcoin as a strategic asset.

Russian President Vladimir Putin also acknowledged Bitcoin's potential on Dec. 5, suggesting it could be useful as Russia's foreign reserves remain frozen. In anticipation of global shifts, major corporations and financial institutions have entered the market, focusing on stablecoins and Bitcoin.

"The race to secure Bitcoin at a national level is already underway. If the U.S. Bitcoin Act (which proposes a U.S. strategic Bitcoin reserve) is enacted, the so-called 'Bitcoin space race' among nations could become a reality," the report reads. "At that point, holding a certain amount of Bitcoin may become a part of responsibility not only for nations but also for financial institutions."

While the second Donald Trump administration is expected to adopt pro-crypto policies, establishing a strategic Bitcoin reserve may not be straightforward, as Federal Reserve (Fed) Chair Jerome Powell has expressed reservations.

"We’re not permitted to own Bitcoin. The Federal Reserve Act defines what we can own, and we’re not seeking a change in the law," Powell said at a press conference on Wednesday following the Fed's hawkish rate cut.

This was the first time Powell has officially addressed the issue. While Bitcoin could be accumulated at the Treasury level, which handles government bond issuance, the central bank's involvement would be necessary to align the move with monetary policy.

Powell's statement led to a drop in Bitcoin's price, which had recently surged past $108,000 amid optimism over Trump's policies. Bitcoin fell to $98,800 in the Wednesday market before recovering some losses. As of 3:17 p.m., it trades at $101,137 on Binance and 151.1 million won ($104,080) on Upbit, Korea's largest virtual asset exchange.