The Potential for US Bitcoin Purchases in 2025: An Evolving Narrative
In a recent development, Alex Thorn, the Head of Research at Galaxy Digital, has shared a significant shift in his perspective regarding the United States government’s potential acquisition of Bitcoin in the year 2025. Thorn, writing on social media platform X, highlighted what he sees as a transformative scenario. He remarked, “It appears increasingly plausible that the USA is advancing in the logistics and mechanics of establishing a strategic reserve. Previously, we anticipated that by December 2024, the US would hold Bitcoin without making purchases. Now, the likelihood has grown that the US government will make at least one purchase in 2025.”
Why a Change in Outlook?
The basis for Thorn’s altered outlook stems from recent comments by the Trump administration. He noted, “Refer to Bessent’s comment to Tucker Carlson, as well as the ongoing discussions from leaders like Sacks and Hines.” Moreover, there is an impending deadline for a Bitcoin audit: “Remember, Monday marks the deadline from the Strategic Bitcoin Reserve Executive Order for government agencies to finalize the audit of their Bitcoin and digital asset holdings. While it’s uncertain if they will publicly disclose the findings, it’s likely that significant progress is being made.”
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Insights from Key Figures
The mention of “Bessent’s comment” relates to statements made by US Treasury Secretary Scott Bessent during an interview with Tucker Carlson. When questioned about the current global movement of gold, Bessent provided a brief answer before unexpectedly transitioning to discuss Bitcoin. Steven Lubka, the head of private wealth at Swan, shared on X, “Bessent was questioned, ‘Why is Gold moving around the world right now?’ After a succinct response, he spontaneously remarked, ‘There are numerous stores of value over time. Bitcoin is emerging as a store of value, similar to gold’s historical role.’ This is a clear indication for those who are observant.”
The Executive Order and Strategic Bitcoin Reserve
These discussions follow an executive order issued by President Trump on March 6, which formally established the US Strategic Bitcoin Reserve (SBR). The directive mandates that any Bitcoin acquired by the government through forfeitures and seizures be placed under federal control, integrating it as a long-term strategic asset. The Treasury and Commerce Departments have been instructed to develop strategies for acquiring additional Bitcoin, provided that these methods remain budget-neutral and do not burden US taxpayers with extra costs.
Gold Certificates and Bitcoin Acquisition
Robert “Bo” Hines, the Executive Director of the Presidential Council of Advisers for Digital Assets, has suggested the possibility of utilizing gold certificates. The Federal Reserve Bank of St. Louis values these certificates at a statutory rate of $42.22 per troy ounce, a figure that is significantly lower than the market price, which exceeds $3,000 per ounce. Speaking at the Digital Assets Summit on March 18, Hines emphasized the Trump administration’s dedication to Bitcoin and provided further insights into the potential volume of Bitcoin the government might aim to accumulate, drawing a parallel to the acquisition of gold reserves. “I’m frequently asked how much Bitcoin we want. It’s akin to asking a nation how much gold it desires. The answer is as much as possible.”
Public Support and Government Involvement
Hines’s statements resonate with those of David Sacks, the so-called “Crypto Czar,” who has been an outspoken advocate for increased government participation in the realm of digital assets.
Bitcoin’s Current Market Status
As of the latest updates, Bitcoin is trading at a value of $77,570, maintaining stability above the $77,000 threshold.
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